Saturday, August 13, 2005

Gold and Silver Disconnect

Gold has made a nice move up relative to silver. The cartel could not keep gold to a $6 dollar gain for the day on Thursday as it moved up intra day 11 and closed up 9, which I can not remember happening before. They are losing control of gold.

I suspect silver was more supressable than gold so that is where the cartel's efforts were concentrated to try and give the impression that gold wasn't doing that well if silver was not following close behind. Not to worry though. It will be a site to behold to see silver play catch up to gold and then some, particularly since silver in inflation adjusted terms maybe at an all time low. It is soooo rediculously cheap historically and particularly since it is now a lot more rare in the world than gold is, particularly considering verifiable above ground inventories.

Silver is "just this side of stealing".

In the financial markets, the crowds do not want low priced items. A quirk of human nature I guess. The crowd will want more of silver the higher the price goes till they have no more "money" to buy any more silver. Yet if you asked members of the crowd, they probably would agree with you that the way to make "money" in financial markets is to buy low and sell high. But they do not actually do that. They wait for higher prices to make sure the rest of the crowd is doing the same thing.

There are very few who can actually buy really cheap like silver is now.

Anyways, gold made it up and out of its 8-9 month long flag formation. Very bullish.

"If tyranny and oppression ever come to this land [America], it will be in the guise of fighting a foreign enemy." - James Madison

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