What's With The Gold and Silver Separation?
I've gotten quite a few emails questioning the sharp move up in gold with silver getting slammed down. My take...there is still lot's of "Nervous Nellies" out there but this time it's those who took my advice a few years back by switching from Gold to Silver. Here's the article:
Melt The Witch
//www.roadtoroota.com/public/136.cfm
What is REALLY going on out there is MIND GAMES! The Banksters can place the price of either metal ANYWHERE they want at any time.
Here's the FALSE spin that should come out about today's divergent move in the monetary metals:
1) The silver price move was way too big and too fast and people are switching out of silver and buying gold.
2) The Silver to Gold Ratio is going back to it's 50-1 (recent) historical average.
3) The rise in the price of gold was for "Safe Haven" purposes and Silver is not a Safe Haven.
4) The CME and CFTC will do anything to stop the price explosion in Silver so you better stay away.
And on and on it will be spun so what action should you take...
CLOSE YOUR EYES AND EARS AND KEEP BUYING PHYSICAL SILVER!
When you think about it...in a Free Market there should be very little correlation in the price moves of silver and gold as they have vastly different purposes and uses. Silver is an industrial commodity as judged by the majority of demand over the past 50 years...gold is not. Gold is a global monetary reserve metal as judged by the majority of demand over the past 50 years...silver is not. The only thing that is correlated should be small precious metal investor demand and that is hardly big enough to link the prices of gold and silver at the hip on every price move.
Here's why the price swings of gold and silver are correlated....
BOTH METALS ARE CONTROLLED BY COMPUTER TRADING PROGRAMS!
Here's my investment strategy:
Buy silver at $40
Buy silver at $50
Buy silver at $100
Buy silver at $500
Buy silver at $1,000
Buy silver at $5,000
Get the idea?
Have a nice weekend.
Bix Weir
