For the first time in nearly 6 months the gold/ silver ratio has broken below 54 to 1, currently trading at 53.79 to 1.
As discussed previously, we expect the gold/silver ratio to narrow substantially during this bull run, likely as much as 20 to 1.
The six month uptrend in the g/s ratio has been decidedly broken to the downside.
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_silv.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_gold.gif)
Not just yet……. one more sell off to between 20.00 and 25.00 then its off to 150.00 an ounce after JPM and their ilk cover their short position just ahead of QE3 announcement.
I’m holding out for 5 to 1 or 1 to 1.
I’ll be holding it until it takes more than 1 ounce of gold to buy one ounce of silver. Only when the above ground of silver disappears completely!
Poppa T what are you drinking? If they couldn’t break 26 on 4 tries, they AINT going to do it now. I would be glad to back up the truck if that ever happened (me and every stacker) and then there would be no stop at 150, maybe 1500.
Year and a half ago G:S was like 35:1—keep in mind we were paying a $7.50 premium on every ASE then too.
I really think the key to all of this is when the people invested in paper metals figure out they are not going to receive their metal. Look how long it is taking Mr. Sprott to receive his silver order. We supposedly have 1 Billion ounces of silver above ground right now. We have been having an actual shortage for quite sometime. Still even the “smart” investors like Paulson and Soros pump money into paper. You can bet they aren’t planning on not receiving their metal so that mean a lot of other folks will come up short. Smart is going to have a whole new meaning in the not to distant future.
We have read articles by people that study this for a living about suffering to come in biblical proportions. Well when folks don’t receive the metal they have coming the suffering will begin. The whole system is going to blow and the madness will start immediately. The ridiculous amounts of paper trading will shortly have no meaning as far as the price of an ounce. Demand is going to take over and like the pros say — if you don’t hold it, you don’t own it.
I pray that we will be able to somehow make it through this nightmare. I believe stackers will certainly take care of their family and network. People outside of that are going to be completely lost. Imagine all those counting on the gov’t checks they have earned through Social Security, military service and civil service. The gov’t will try and pay those as long as they can with highly inflated greenbacks. Sooner or later common sense will have to set in and a new currency will emerge for the entire world. I just hope it is not some NWO crafty plan to harm the population.
People are going to get their priorities straight someday soon as every gov’t and market is officially a scam. They will throw everything they have at it but solid bases have been built in the metals. IMHO there is nothing but upside in the metals and we have to hunker down and get through the madness. A free market will adjust the ratios where they need to be and eventually order will be restored. How long that takes is anybody’s guess right now. I praying it isn’t an extended period of time. Take care.
Gold at $4,000 an oz. GTSR 30 to 1 Silver at $133. That would not be unrealistic IMO and would not require total financial collapse to get there. (I hope that does not happen for any reason)
Gold was $800 just a few years ago. Silver at $8. Silver shortages are baked in the cake, as are gold shortages. I think this could easily be the case by April-May 2013, prior to the summer weakness that is typical of both metals. There seems to be a near mathematical certainty for these assumptions. This could also be the low end of the range but I am being conservative. Anything higher that is possible but could presage much worse financial damage due to ongoing world events
Yes AGXIIK, that’s a good point a lot of people don’t “get.” Silver and gold could go a lot higher even without a collapse of the system. Gold could be multiple thousands and silver in triple digits and markets still functioning.
And PMs don’t “need” hyperinflation either. Just several years of stubborn debilitating inflation like we’ve seen in the last 10 years will be enough to keep the bull market alive for years. It will be a long time before real interest rates are positive again, and it will have to be STRONGLY positive (real rates) to make people want to sell PMs and move back into paper.