Saturday, April 22, 2017

Gold and silver price diverges even more last week as ratio is now over 71:1

While there were at least two distinct attacks on gold by the bullion banks last week as the amount of paper short contracts on the Comex has reached record levels, the price was able to stay relatively stable as it ended the week around $1285.

But unfortunately the same cannot be said for silver as it was hit much harder than its more valuable monetary brother, and by the end of the week the ratio between gold and silver prices reached over 71:1.


Silver has always carried much greater volatility since the metals were removed from the U.S.'s monetary system, however this extreme divergence in price is primarily due to the amount of manipulation allowed in the futures markets where unlimited amounts of shorting are accepted to help protect the dollar and reserve currency.

Historically, the price ratio between gold and silver was at best 5:1 at times, and on average between 10:1 and 16:1.  And when you take into consideration the fact that silver is now an intrinsic necessity for most of the electronics and technology we rely upon to run our daily lives, then at some point even the manipulation will cease as demand for the metal will override even the central bank's ability to control its price.


When gold and silver ratio's reach extreme levels on either side, then it is very profitable to conduct a swap of one metal for the other dependent upon how big or small that ratio is.  And at 71:1, exchanging gold for silver is a great way to make future profits without having to spend a great deal more than the premium costs that might be required by local and online coin shops who can easily do this exchange.

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