Gold-to-Silver Ratio Soars By Most In 2012

Tyler Durden's picture

From the open of the US equity market day-session, gold and silver have diverged aggressively. Gold is notably outperforming silver - in fact today is the biggest jump in the Gold/Silver ratio of the year. The Gold/Silver ratio has also retraced upwards to its 50DMA. It seems there is overall pressure on precious metals post-Bernanke but the relative preference is for Gold so far.


From the start of the US equity day-session, gold and silver have diverged...


Gold/Silver ratio jumps by most in 2012 to catch up to its 50DMA...


Charts: Bloomberg

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Top_Kill's picture

STACKING MORE! THANKS JAMIE! On the first day of Christmas Blythe gave to me...a "In debt and death we trust" silver bullet silver shiield one oz round.

Can't wait to see what Blythe brings tomorrow!

MillionDollarBonus_'s picture

Gold is heading significantly lowe, I'm afraid. Yesterday's trading action was nothing short of dismal, and paints a bleak outlook for gold and silver. The dreams of goldbugs are about to shattered into tiny pieces by the coming collapse of the gold bubble. The crash is long overdue - I can't say whether it will be next week, or next month, but it's coming. 

Chump's picture

Man I hope so.  A sale like that would have me grabbing coins hand over fist.

Chump's picture

Hey man, it's not my Congresscritters that are the problem.  It's yours.

Oldballplayer's picture

I know. His guy kind of smells. Like decaying old person smell.

Mine is as fresh as a summers eve.

Chump's picture

Douche and Turd.  It's always a contest between Douche and Turd.  +1

trav777's picture

It is as if millions of silverbug doomer goons cried out in terror and were suddenly blowtorched

Oquities's picture

swapped $2,375 in green paper today for 400 pre-1965 US quarters = 72 oz. silver - felt very good about it.

Oquities's picture

on the way home from the coin dealer, stopped at dunham sports for 2 boxes each 38 special and 12 ga. buckshot - true shit, yippee!

FEDbuster's picture

Both good investments for an uncertain future.  I highly recommend the pre-65 quarters.  They can usually be bought around spot and are a perfect denomination (current value around 6 FRNs).

EnslavethechildrenforBen's picture

The Gold / Silver ratio commonly diverges as hyperinflation kicks in. The big dogs are getting out of Silver in to Gold.

akak's picture

It's as if millions of blacks in "logical', 'scientific' gas chambers cried out in terror at the moment of their death --- and Trav smiled.

Pascal1967's picture

Incumbents get voted in by higher and higher percentages every election. It is a game BOTH parties play when rigging the congressional districts. they vote for the new districts to protect each other. The "percentage by which incumbents win" is going UP and UP, election aft election.


I have to poop.  Paper sucks, you Wall Street fucks! I'll see you vampires in the sun, with my loaded silver gun. Yer goin' down in flames, from Lower Manhattan to the Thames. Your paper is I know not where, I'd rather shit my underwear!  For, be there bull, or be there bear, silver is the suit I wear!

(With gratitude, and apologies to Dr. Seuss.)


The only paper I own is the stuff I wipe my ass with. Market paper is worthless, because I cannot do a good job of wiping my ass with it. Gold was worth $28.00 an ounce when I was a kid. Silver was worth whatever was printed on the coin you spent. Any one think those days are coming back? All of the lying bum fucking aristocracy of the Age Of Paper Power can burn in their paper suits soonest. I won't even bother pissing on them to put out the flames.

I collect gold, silver, lead, copper, real dry powder, food, tools, diesel fuel, and other useful commodities. There is a community of folks all doing the same, so skill sets and extra eyes and hands can guard each others sixes. I'll bank on that first. 

HFT ain't good for me. 

Credit defaults far as the eye can see.


CDS's gonna make some messes. 

Boo hoo hoo as thieves confesses. 

TBTF gonna fall off a cliff - REAL NEAT. Wall Street is a bunch of fucking dead meat.


Banks used to be so overleveraged bold.

Now, they're layin' bankrupt,dead and cold. Gonna be nothing but prepper people,

all the rest gonna be surprised fucked up Sheeple. God bless this mess. I must confess.

I'm a fucking poet,


and didn't even know it.



FEDbuster's picture

Nice commentary on the undervalued asset, silver, by Andy Hoffman:

My new post SHTF skill to work on next year is to perfect the making of "hard" cider from apples.  We have plenty of apple trees around here, and I think hard cider would be a great barter item.  I understand with the right equipment it is fairly easy to make.

Ookspay's picture

Amen! In times like these yeast excrement can be very useful.

Orly's picture

Am I just discovering that all you gold-bug types are also anally fixated?

akak's picture

If so, it is only due to being forced to use so much paper to wipe away all the crap.

JonNadler's picture

you know Orly and I are the same person don't you?

akak's picture

The realization has been dawning for some time.

JonNadler's picture

she' one of my poorest creations

AgShaman's picture


We understand she doesn't own any gold or silver,

but she is perfecting her beet recipes

Bansters-in-my- feces's picture

Hey Oral=y How about a round for the boys.

crusty curmudgeon's picture

It's extremely easy to make and it tastes great.  You can perfect this in January and work on other skills the rest of the year.

FEDbuster's picture

Thanks for the link.  Here is how to add the "hard" to the cider:

Much of my Spring freetime will be dedicated to my garden and planting more apple trees.

perchprism's picture


I have 5 apple trees now.   I bought an antique press in Gatlinburg, TN this past October---like about $100.  Works fine. 

But the deal with hard cider is, you have to save some of it to make vinegar.  Vinegar at 5% acid is what you need for pickling and cheese-making, as well canning lots of stuff.  So try to make some vinegar from your cider.

Solon the Destroyer's picture

I buy my goddaughter Silver coins every Birthday and Xmas.  She's only 11, but dammit, I'm responsible for her spiritual health.  This year I'm also buying her a little chest (converted jewellery box) to keep her "treasure" in.

My point is, Silver and Gold coins make for great gifts, and when given to children, teaches them the importance of savings and security.  The monkey-hammering PMs are taking recently is like a Black Friday sale on Gold and Silver. I love it.

And I find the best way to convert people to the idea of buying PMs is to show them a coin, let them hold it, let them think about how much they would like one too.  I never tell people how big my stack is, but I usually walk around with a gold coin in my pocket, just for evangelistic purposes. People love to see it and hold it... "my god, it's so heavy"  "Yes my friend, that weight you're feeling there is value.  Now pick up a half dollar or a loonie or a pound coin... feels cheap, doesn't it?  That's coz it is."

Carrying coins and showing your friends, buying them as gifts for your loved ones are the best things we can do for the price of PMs.  Grassroots, bitchez.

Ookspay's picture

Very good story and great advice. Mine is similar; my wife is one of fourteen siblings in her family, no they're not Catholic, lol. When we got married Christmas was chaos, we would bring home dozens of ridiculous and useless gifts every year and then throw them away weeks or days later.  Ten years ago I started giving tenth ounce gold coins to all of the kids instead of toys, now I give silver eagles. For a few years now all of the aunts and uncles give them out as well, my kids have quite a stack already and they love, understand and appreciate it very much. We also draw names for a secret Santa gift of one toy for each child jsut for the fun of it. But the kids are accumulating wealth and learning the value of real money. It is a great lesson indeed and everyone seems to love it! This year I am giving out Chinese 41 gram bars, "meet the new boss..."

Solon the Destroyer's picture

And there's one sure-fire way to the hearts of the kidlets.

Yes I'm talking about Burl Ives:

Silver and gold
Silver and gold
Silver and gold
Ev'ryone wishes
For silver and gold
How do you measure
It's worth?
Just by the pleasure it
Gives here on Earth
Silver and gold
Silver and gold
Mean so much more
When I see
And gold decorations
On ev'ry Christmas tree
Silver, silver and gold
Silver, silver and gold
Silver and gold

Silver and gold
Silver and gold
Wise men brought gifts
To the mange I'm told
Mary was humble to see
Shepherds and kings
There on bended knees
It's silver and gold
Silver and gold
Feeling the world
With their lives
Silver and gold
How they shimmer
On ev'ry Christmas night
On ev'ry Christmas night

villainvomit's picture

I have been giving silver morgans as gifts to the loved ones for a while.  Either that or a blade that I made. 

"Every Southern gentleman should always carry a knife"  who said that ?  Yeah, I prolly mangled it, but it's true.



Solon the Destroyer's picture

Thanks for sharing your stories too, Ookspay and Villain.

I haven't been doing this as long as you Ooks, but you're telling me I'm on the right path.  PMs can go viral at the family level, they don't need the internet.  And then those kids friends starting asking and then so on and so on like the old shampoo ad.

I know my little one's older brothers are already jealous of her treasure, and that's a good thing.

Ookspay's picture

Atta Boy Solon! It's a healthy addiction.

Smicer's picture

Careful Villian. They will both be soon illegal to possess.

WmMcK's picture

And a handkerchief and a flashlight.

trav777's picture

in a few years from now, when you silverbugz are all broke, I'll be buying your daughter a "big chest."

akak's picture

Go tell it to the soon-to-be bagholders in overpriced equities and bubblelicious bonds.

Your continued specious misportrayal of ALL silver investors as "bagholders", pumpers and gullible fools only highlights what a dishonest, disingenuous, malicious piece of shit you truly are.  Your racism is only the icing on the cake.

AgShaman's picture

I knew you wasn't a player.

If you had the juice, you'd make her buy her own set!

Xanadu_doo's picture

yep - awesome. I keep buying PMs but give most away as gifts these days...ever since that bad boating accident anyway.

Piranhanoia's picture

There is a sale going on where I live.  They take green paper for gold and silver.  Can you dig it?

SAT 800's picture

Hey, that's some crazy shit, brother. I can get behind that. Paper for Gold and Silver, eh? 

sessinpo's picture

Has it ever occurred to anyone here that if PMs were going to sky rocket to infinintum like some PM bugs would hope for, that these PM companies wouldn't be selling to you? Wouldn't they be hoarding it themselves. Yea, I know they have to make a living and they have a markup over the spot price. But even then, wouldn't they increase their markup? For example, you can easily get silver with a 15% markup over spot. You can get gold at 5% over spot.


I do see a huge financial calamity coming, as most of us do. However, I think it plays out differently and thus I take a contrarian view. And yes, I do hold a small portion of my assets in PMs. I am asking you to think logically. Put yourself in the shoes of a PM company that sells retail to the public. If you had such strong opinion of the PM market, why would you sell at such a low margin?


On another note, as I posted yesterday on Flakmeister, we see oil going down again. Or basically as most things, not moving much relative to everything else. In other words a brief period of limbo where the markets are clearifying the fundamentals. I add this comment because it also relates to PMs. With all the massive printing, why aren't prices of PMs and oil much higher? That is the market telling you something. The hidden message between the lines that most investors/speculators miss and why most of them lose money.

akak's picture


With all the massive printing, why aren't prices of PMs and oil much higher? That is the market telling you something.

Actually, I think yesterday's little waterfall plunge is more likely Goldman Sachs, the LBMA, the Fed and the PPT trying to tell us something.

sessinpo's picture

But that doesn't answer my question. You are talking about one day. I am talking about the market overall.


Do I have to cite you all the money that has been printed? Do I have to mention all the various stimulus programs by various departments? Even here, many of us focus on the TRITE $16 trillion in debt when in fact that debt worldwide is likely closer to $100 trillion (I admit that much of that debt I just stated is future obligation so it is questionable - I am an honest debator). But I also did some research and even corrected Tyler that the FED created an addtional $16 trillion in debt (financial support) worldwide in just 5 years.  And if you combine what the FED has done, what the ECB has done and other various central banks like Japan and China, you could easily caculate printing to counteract that $100 trillion in debt.


So I pose my question to you again, since you responded. If worldwide, we have upwards of $100 trillion in printing, why aren't such commodities much higher. I have answered this in many post and I am pushing others to debate my position in a logical fashion.

So far, the markets and my investments have told me I am right.

akak's picture

I will freely admit that I do not know why all the governmental debt monetization has not sent the prices of gold and silver even higher than they have --- yet.

However, focusing on the bigger and longer-term picture, as you wisely admonish, I note that their prices are still in a decade-long upward trend, not a falling one as all the deflationary crackpots would have had us expecting four years ago. 

MeelionDollerBogus's picture

There's an endless black hole of debt in every nation.

Why expect the cash to come back out of the event horizon? It can't. What can happen is refusal to put it INTO the event horizon, yet still to print. That day will come.

Confused's picture

Why aren't they higher? Manipulation. 


Think its far fetched? One word........LIBOR.


why are they selling it to us? 


Because the mass still believes in paper.......until it doesn't. 

MeelionDollerBogus's picture

Clearly large amounts of printed cash (electrons included) are dedicated to specific bond purchases & rehypothecation - it's a solvency issue. Promises were made to put the cash there first so that's where it is. Not gold, not oil, not commodities, though profits FROM the activities is extra and THAT can (did) go into commodities, yielding profits for some, price increases over-all & some nice volatility.

Don't knock the volatility, that's what let's traders trade. Options, HFT's, I don't care as long as it's legal & I'm allowed to do what they do OR they (HFT's, HF's) are dumb enough to indicate in advance what they'll do so I can move ahead of that.