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the decoupling of gold and silver
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<p>[QUOTE="yakpoo, post: 1241838, member: 18157"]Your charts definitely show similar price trends, but they don't really show the relative magnitude of the moves since they're not drawn to the same scale or have the same starting point. The Y-Axis of the Silver chart is about a 10/1 ratio whereas the Y-Axis of the Gold chart is about a 6/1 ratio. </p><p><br /></p><p>Take the period from about Nov2009 to Nov2009, Silver goes from about $10-$20 (100% increase) and Gold goes from about $800-$1200 (50% increase). The "trend" seems coupled (likely due to movements in the dollar), but the magnitude of the moves of each metal (and the ratio between them) isn't coupled at all. </p><p><br /></p><p>The "Blow-off" of the Silver chart in April of this year and the subsequent "Break-down" is likely due (imo) to all the hype surrounding the COMEX's ability to meet potential demands for physical delivery on their contracts. I even remember someone on CT making the argument that silver is fairly valued at $134/Oz...that's just crazy! The markets stepped in with their little "Margin Requirement" pin and popped the Silverbugs' bubble...pop, pop, pop. Chances are that many of those Silver speculators are now going after Gold or Palladium...or Zinc (who knows?).</p><p><br /></p><p><br /></p><p><img src="http://i664.photobucket.com/albums/vv10/Yakpoo/GS1.jpg" class="bbCodeImage wysiwygImage" alt="" unselectable="on" />[/QUOTE]</p><p><br /></p>
[QUOTE="yakpoo, post: 1241838, member: 18157"]Your charts definitely show similar price trends, but they don't really show the relative magnitude of the moves since they're not drawn to the same scale or have the same starting point. The Y-Axis of the Silver chart is about a 10/1 ratio whereas the Y-Axis of the Gold chart is about a 6/1 ratio. Take the period from about Nov2009 to Nov2009, Silver goes from about $10-$20 (100% increase) and Gold goes from about $800-$1200 (50% increase). The "trend" seems coupled (likely due to movements in the dollar), but the magnitude of the moves of each metal (and the ratio between them) isn't coupled at all. The "Blow-off" of the Silver chart in April of this year and the subsequent "Break-down" is likely due (imo) to all the hype surrounding the COMEX's ability to meet potential demands for physical delivery on their contracts. I even remember someone on CT making the argument that silver is fairly valued at $134/Oz...that's just crazy! The markets stepped in with their little "Margin Requirement" pin and popped the Silverbugs' bubble...pop, pop, pop. Chances are that many of those Silver speculators are now going after Gold or Palladium...or Zinc (who knows?). [IMG]http://i664.photobucket.com/albums/vv10/Yakpoo/GS1.jpg[/IMG][/QUOTE]
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the decoupling of gold and silver
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