Friday
This is not really my area of interest, but it may help explain for those new to the area why it is that the dollar price of Gold has risen strongly, while the price of silver has dropped.
Just understand that the BIG money is now beginning its move into Gold, but the small money is still hurting from the burn they received when they bet on silver and it went down. As usual, it is all about demand.
BIG money does not buy silver – it’s too bulky and too heavy meaning too expensive and difficult to store and insure.
Silver is for the smaller buyer and they are now cautiously and nervously peering on from the sidelines.
When the little guy does come back into the arena it will be tentatively and then, suddenly, at a gallop. The P.O.S. will skyrocket.
When will that be? I have no idea, but it won’t be in the far-off distant future.
Now is a very good time to swap any spare dollars for silver.
The Gold/silver ratio* is going to dramatically narrow.
* The number of ounces of silver it takes to buy 1oz Gold.