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<p>[QUOTE=&quot;WingedLiberty, post: 1241059, member: 26030&quot;]I have noticed over the past few months that gold and silver seem to have decoupled. That is they don&#039;t really trade in tandem as strongly as they did for years.</p><p><br /></p><p>The price chart for Gold has been acting much more bullish, blowing past the april highs&nbsp; ... while silver has been languishing still trading a good 25% below it&#039;s april high.</p><p><br /></p><p>I think I finally figured out a reason ...</p><p><br /></p><p>Gold is running on demand from central banks and governments around the world that want to diversify away from the dollar.&nbsp; And these same entities don&#039;t buy silver (in the same way).&nbsp;&nbsp; Plus these central banks and governments have DEEP POCKETS and can buy MASSIVE amounts of the yellow metal.&nbsp; The buyers for silver are more focused in the public sector and I think the public sector tends to get more quickly tapped out.</p><p><br /></p><p>Gold has always &quot;worn just one hat&quot;, as a surrogate currency that cannot be inflated.&nbsp;&nbsp; </p><p><br /></p><p>Silver has always &quot;worn two hats&quot;, a surrogate currency hat and an industrial metal hat.&nbsp;&nbsp; It seems like over the past 3 months or so (since the $50 to $30 crash), silver&#039;s industrial metal hat has gotten bigger, and it&#039;s surrogate currency hat has shrunk.&nbsp; </p><p><br /></p><p>Silver has been trading much more like Gold&#039;s poor cousin with up moves&nbsp; much smaller than the yellow metal due to smaller buying demand.&nbsp;&nbsp; It&#039;s&nbsp; interesting.&nbsp; This has been stretching the gold silver ratio.&nbsp; I wonder&nbsp; if Silver will at some point have a snap back rally?&nbsp; or if this&nbsp; discrepancy or divergence will continue for a while.&nbsp; </p><p><br /></p><p>It will be interesting to watch.[/QUOTE]</p><p><br /></p>

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