Why has silver separated from gold?

[rapidtrends]

Paper silver is easier to manipulate!

Bingo. 3D nails it.

Like a compressed spring, the longer and harder you supress something the more force it comes back with when it ends.

US Gov can feed gold stocks into the COMEX to prevent a default...but it has no silver stocks to do the same with.

Silver could make the whole thing come unhinged.

Also, if the historical ratio is 13:1 Silver:Gold and it overshoots, we will see a massive rise in silver valuation.

 

[Mitt Romneys sideburns]

Peter Schiff said the Perth Mint in Australia is having problems meeting demand for a large increase in coins over bars, meaning there is an uncharacteristic increase in small buyers.

 

[tremendoustie]

Peter Schiff said the Perth Mint in Australia is having problems meeting demand for a large increase in coins over bars, meaning there is an uncharacteristic increase in small buyers.

It doesn't seem like minting equipment would be THAT expensive. We've been hearing about this shortage for months, why hasn't someone set up a small mint, bought bullion, and started stamping out 1oz coins?

 

[danberkeley]

It doesn't seem like minting equipment would be THAT expensive. We've been hearing about this shortage for months, why hasn't someone set up a small mint, bought bullion, and started stamping out 1oz coins?

As if starting a business is that easy. Do you have the capital to start one up?

 

[Mitt Romneys sideburns]

It doesn't seem like minting equipment would be THAT expensive. We've been hearing about this shortage for months, why hasn't someone set up a small mint, bought bullion, and started stamping out 1oz coins?

Why they cant mint them fast enough is irrelevant. The point is, there is a big increase in demand from small buyers of gold. Small buyers are not going to diversify themselves with other metals, like silver, as a big investor would. This could explain why there is a huge gap between gold and silver.

 

[DFF]

They've aligned again. http://goldprice.org/live-gold-price.html

Click on Live Gold Price Chart ---> Instruments ---> Silver Price USD Spot ---> Overlay

 

[Dr.3D]

Here is my data.

They've aligned again. http://goldprice.org/live-gold-price.html

Click on Live Gold Price Chart ---> Instruments ---> Silver Price USD Spot ---> Overlay

Well, here is my chart. Seems they just adjusted theirs to make the last part meet.

Edit: This chart is probably more telling.

 

[Brassmouth]

Soooo....is it still a good time to buy silver over gold?

 

[Dr.3D]

Soooo....is it still a good time to buy silver over gold?

Well, for quite some time, the gold/silver ratio has been around 50 so since it is currently around 80, I would have to believe it is still a good time to buy silver.

Of course we must understand what the gold/silver ratio means.
This is the number of ounces of silver required to buy one ounce of gold.

 

[RSLudlum]

how do these charts compare to recent history recessionary times? And has the use of silver in industry increased since those times?

 

[Dr.3D]

how do these charts compare to recent history recessionary times? And has the use of silver in industry increased since those times?

Here is a chart showing 600 years of silver prices. It may help to see what happens in times of recession.

Silver: known economically workable deposits will be exhausted in 2021 <--- link

http://www.silvermonthly.com/71/global-silver-demand/

http://www.silverinstitute.org/supply_demand.php

http://www.gold-eagle.com/editorials_05/morgan081905.html

 

[DFF]

If it takes roughly 80 ounces of silver to purchase 1 ounce of gold how can this be seen as bullish on silvers part? Taking almost twice as much silver to purchase an ounce of gold means the price is going down...right?

 

[Dr.3D]

If it takes roughly 80 ounces of silver to purchase 1 ounce of gold how can this be seen as bullish on silvers part? Taking almost twice as much silver to purchase an ounce of gold means the price is going down...right?

What happens to the price of silver when the ratio goes back to normal?

Please see this video: http://www.monex.com/expert/supply-demand-important.html

 

[DFF]

Gotcha.

Back to why silver's separated from gold, this chart says it all: because it's heavily used in industry.

Until the industrial sector of the world gets back on it's feet, which is anybody's guess, silver should continue onward with it's departure from gold.