Wednesday, September 19, 2007

silver/gold ratio

Since the middle of 03 silver has been outperforming gold. Notice how silver when it starts to move takes off like a rocket. That's what happens when a little bit of money moves into a very thin market. Silver took a beating on Aug. 16th. However look what has happened in the past after one of these washouts. I have a feeling it won't be too long before silver starts to make up for lost time. If there is anything in the investing world that is ridiculously cheap it's silver. The commercials seem to think so to as they have had over the last 4 weeks one of the smallest net short position since 03. Even more bullish in my opinion is the fact that as silver rose almost a dollar they got even more bullish. This my friends is one of those opportunities that only come around every once in a while. I've heard a bit of talk about gold in the media recently mostly as a signal of inflation rarely as an investment but I have yet to hear a single thing about silver. I just love it when that happens. It means silver has a long long ways to go.