SD Midweek Update: The markets aren’t even open and it’s already getting ugly….
First the good news.
If copper is finding a bottom in the short-term, the silver price can find a floor based on the “industrial use” aspect of the white metal:
Silver has two unique properties that, when comparing all other asset classes, are only seen in gold as well: Silver is money and silver is an industrial metal. If the copper price is turning up, as shown in the chart above, silver could start moving up in price as well, which it looks like it wants to do when compared with copper.
In addition to the industrial side of silver piggy-backing the turn with copper, The gold-to-silver ratio (GSR) is screaming “buy silver”:
From just a few trading days ago, the ratio has shot up, meaning that it takes way more silver to buy just one ounce of gold right now. Said differently, the ratio is getting extreme again, which means that silver could start moving quickly in price as more and more people decide to purchase silver over gold.
Last night we put out a post discussing the GSR, which is a great primer for those new to the precious metals.
We can see one of the reasons why silver has taken such a hit lately if we look at the action in the trading:
Make that lack of action. Yes, there is options expiration, but when the market is thinly traded, that adds to the cartel’s ability to smash the price.
We have not even passed the full brunt of The Fed Offensive yet:
Once again, we can see there will be a triple attack, and just like Monday, we have morning, afternoon, and then early evening Fedspeak to deal with. If we can say the Fed will let up, they will do so only to a lesser extent because there are speeches on Thursday and Friday too.
Read More @ SilverDoctors.com