$5 silver

Silver Charts Say $5 Or Lower Is Coming

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SILVER CHARTS SAY $5

Even the most casual silver investor must be discouraged with what has happened to silver prices recently. But what about those who were/are super bullish? How do they feel?

As I read various reports and articles, I sense some back peddling on the more extreme predictions which were so prevalent just shortly more than a month ago. On the other hand, I also sense a reluctance to let go; to just admit they were wrong and move on.

Experiencing the reality of silver’s price decline of more than one-third in barely three weeks has left its mark in ways that cannot be ignored. It is ignored, though. And when it isn’t ignored, it is excused; or explained in terms that are supposed to make you feel better, but somehow make you feel worse.

Rather than rehash all of the depressing details verbally, I thought it might be a good idea to look at some silver charts which give us pictures of the damage that has been inflicted on a technical basis.

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Gold-Silver Ratio Tops 100; Silver Headed For Sub-$10

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GOLD-SILVER RATIO TOPS 100 

Recently, the gold-silver ratio topped 100. Nevertheless, it doesn’t seem to matter what the ratio is, or how high it goes. Those who prefer silver always seem to think it’s going to reverse “soon”.

It might; maybe significantly so, too. But it doesn’t mean a thing. There are no fundamental reasons for the ratio to move up or down at any given time.

Actually, there is no reason to track it, either. Except that those who love silver think it is correlated in some way with gold; its not. And that silver is cheap relative to gold (it is), so it must be a better buy (its not).

But what if there was a correlation; or inverse correlation? Shouldn’t we see something on a chart that would indicate such?

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