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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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Thu, 12/13/2012 - 14:33 | 3060157 becky quick and...
becky quick and her beautiful mouth's picture

silver can destroy jpm. gold, not so much.

Thu, 12/13/2012 - 14:39 | 3060188 Canadian Dirtlump
Canadian Dirtlump's picture

gold can destroy the US dollar, which is more dangerous.

Thu, 12/13/2012 - 14:53 | 3060260 Mad Mohel
Mad Mohel's picture

JPM is a pissant in the grand scheme of things. Gold can make or break nations.

Thu, 12/13/2012 - 16:07 | 3060590 Bansters-in-my-...
Bansters-in-my- feces's picture

You mean JPM is not the goverment...?

It must be Goldman Sachs I know it's one of the two,or maybe a mix of both.

Thu, 12/13/2012 - 14:34 | 3060158 MassDecep
MassDecep's picture

Do I take that vacation in Cancun , or stack more silver.......BOTH!!!

Thu, 12/13/2012 - 22:38 | 3061702 delacroix
delacroix's picture

check out nicaragua. cheap and beautiful. see how much people can do with little. stack with what you save.

Thu, 12/13/2012 - 14:33 | 3060161 Vint Slugs
Vint Slugs's picture

1990 - Present = giant technical bull flag in this ratio.  To the chagrin of the silver stackers, the ratio is getting started on its way to new all-time highs above 100

Thu, 12/13/2012 - 14:36 | 3060170 francis_sawyer
francis_sawyer's picture

Perfect ~ Can't... It's not like I'm an IDIOT and trade paper prices on it or anything...

Thu, 12/13/2012 - 14:45 | 3060220 fuu
fuu's picture

"giant technical bull flag"

 

Bwahahahahahahahah!

Thu, 12/13/2012 - 14:54 | 3060265 Jesus Christ
Jesus Christ's picture

The Fed just agreed to monetize 1 trillion a year, and silver is dropping like a rock? The only reliable "giant technical bull flag" appears on a graph where insanity is charted on the x-axis, and greed is charted on the y-axis. Boy, do I hate evil.

Thu, 12/13/2012 - 14:33 | 3060162 It is a bargin ...
It is a bargin my friend's picture

I sense a bit of straw grabbing here, i for one am fucked off gold did not break out, not least yesterday and feel as though i',m being slowly but increasingly strangled by CB's here

Thu, 12/13/2012 - 14:43 | 3060212 SgtShaftoe
SgtShaftoe's picture

Exactly, When inflation hits hard, People are going to need the gold and silver price (and mining stocks) to go up so they can buy gas and reasonably good food, assuming salaries doesn't increase, and I don't think there's any danger in that happening.  

Thu, 12/13/2012 - 15:30 | 3060439 PiratePawpaw
PiratePawpaw's picture

If someone GAVE me a share of mining stock, I would walk in the nearest coin dealer and trade it for whatever I could get.

I would consider anything over a new issue zinc penny to be a fair price.

Thu, 12/13/2012 - 15:33 | 3060455 silverserfer
silverserfer's picture

new QE announcements don't have the pop on commodity prices like it used to. The comex game is still rigged and futures traders dont want to get their PP slapped again with one of those dirty little margin hikes. Not with silver at $33 range. Burned too many times have they been.

Thu, 12/13/2012 - 14:34 | 3060164 Texas Ginslinger
Texas Ginslinger's picture

Good time to buy physical silver.

The price is getting brutalized downward right now.

Thu, 12/13/2012 - 14:39 | 3060194 fonzannoon
fonzannoon's picture

The Phyz price? Have you called around? Like I said above I don't think the actual phyz prices are down that much.

Thu, 12/13/2012 - 15:01 | 3060304 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

The physical market spot is determined by the paper markets which supposedly reflect the underlying physical supply and demand.  When the $1,500,000,000,000,000.00 in derivatives finally unwind the prices of most everything will tank.  This includes the "metals" in nominal terms, but NOT the metals purchasing power.

Tuco

Thu, 12/13/2012 - 15:09 | 3060332 DosZap
DosZap's picture

The Phyz price? Have you called around? Like I said above I don't think the actual phyz prices are down that much.

 

 No need for me to call, I deal with same folks 95% of the time since '98.

I can buy 1oz Rounds  @ $33.54 right now and Am Eagles for under $36.00.

Wainting for it to go to $31.00 or below.

Thu, 12/13/2012 - 15:13 | 3060358 fonzannoon
fonzannoon's picture

I was referring to eagles and your price sounds right.

Thu, 12/13/2012 - 14:34 | 3060166 donsluck
donsluck's picture

Be careful about buying in. The silver price is highly affected by industrial production and a coming recession could force it down. The risk with gold is twofold: all profits are taxed as "income" and the very real risk of it becoming contraband, as it was when I was in my 20's. Due to changes in the tax structure, I would sell a good portion of stocks and park it in (physical) cash. The dollar looks like the least ugly girl in the room right now.

Thu, 12/13/2012 - 14:39 | 3060191 metastar
metastar's picture

I understand what you're saying, but...

I don't think there is enough alcohol on the planet to make the dollar look good!

Thu, 12/13/2012 - 14:46 | 3060224 fuu
fuu's picture

"a coming recession"

 

Bwahahahahaha!

Thu, 12/13/2012 - 14:52 | 3060258 donsluck
donsluck's picture

Recession is a direction, not a level. Hence our present "recovery" off the horrible 2008 trouncing. We are still well below the levels of 2007, and still in recovery. When I say recession, I mean a downdraft from where we are now, that is, a negative DIRECTION.

Thu, 12/13/2012 - 15:03 | 3060316 Bay of Pigs
Bay of Pigs's picture

The USD is trading where it was in the fall of 2008 (around 80) while gold has risen from 700 to 1700. Silver 9 to 32.

UE is much higher. Food stamps are at record highs. Debt levels are extreme. What "direction" are you talking about?

Thu, 12/13/2012 - 15:10 | 3060351 NidStyles
NidStyles's picture

Some people have no sense of perspective.

Thu, 12/13/2012 - 17:50 | 3060958 rqb1
rqb1's picture

some perspective have no sense of people

Thu, 12/13/2012 - 18:27 | 3061036 akak
akak's picture

Some perspective people have no sense.

Thu, 12/13/2012 - 19:59 | 3061249 IrritableBowels
IrritableBowels's picture

No sense of perspective some people have.

Jedi Master

Thu, 12/13/2012 - 18:44 | 3061057 jimmyjames
jimmyjames's picture

The USD is trading where it was in the fall of 2008 (around 80) while gold has risen from 700 to 1700.

*******

Hey bay..i can juice it up even more--

The dollar is trading at 2005 levels--gold was at 450 then-any asshole that says it hasn't been a profitable trade- has shit for brains-

Thu, 12/13/2012 - 20:07 | 3061271 Bay of Pigs
Bay of Pigs's picture

JJ,

Dont tell that to the Doelarr bulls who seem to have no ability to discern the facts on currency debasement and purchasing power.

The wailing and knashing of teeth by these buffoonish clowns gets louder and louder as the gold price rises year after year.

Thu, 12/13/2012 - 14:55 | 3060277 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

I think gold profits are taxed as "capital gains" hence some people I know are cashing out of physical by year end before obama higher capital gains tax takes effect.  Then when gold bottoms at $1400 in the first quarter they will buy back in with the full realization that capital gains taxes are going up under our globalist controlled hijacked government.

Tuco

Thu, 12/13/2012 - 14:57 | 3060290 DosZap
DosZap's picture

Tuco,

We will not see Gold @ 1400.00 again for a long time if your right 1.2 trillion Chinese bennybux will be coming home.

Thu, 12/13/2012 - 15:00 | 3060301 Oldballplayer
Oldballplayer's picture

Yeah. Like the tax man has any idea of the cost basis of my gold eagles. And I sure as hell am not going to tell them where they are, and how much they cost. That's the beauty.

Of course all of my stuff trades at a loss. I suck at this stuff.

Thu, 12/13/2012 - 15:01 | 3060309 donsluck
donsluck's picture

Sorry, incorrect. They are income. Check out the IRS info. Your friends cashing out are mistaken, and will pay the piper this coming April. As for $1,400 I would also disagree, and would sell now if I agreed. I think until something unexpected happens, we will be stable for months. The new normal is priced in.

Thu, 12/13/2012 - 15:19 | 3060361 NidStyles
NidStyles's picture

Whoever is feeding you this line of BS should be slapped. Buying gold with cash is an exchange of like items and is not taxable by the IRS code. There is no normal in these markets, they are algo driven and generated.

 

If only half of the people understood the laws as they were written spreading the truth would be easier.

http://www.law.cornell.edu/uscode/text/26/1031

Thu, 12/13/2012 - 16:49 | 3060770 Angus McHugepenis
Angus McHugepenis's picture

Paying TAXES on gold? (or any physical item for that matter). There's a shitload of villages missing their idiots.

Thu, 12/13/2012 - 16:49 | 3060774 Orly
Orly's picture

Short-term capital gains...

38% if I am not mistaken...

Thu, 12/13/2012 - 16:54 | 3060795 DosZap
DosZap's picture

Orly

28% on gains................12 mos or less.

Thu, 12/13/2012 - 16:57 | 3060817 akak
akak's picture

NO, that is WRONG!  Well, only half-right, anyway.

One is only liable to pay the 28% rate if one's income tax bracket reaches or exceeds that level --- for those of more modest income, one's precious metals profits are only subject to their regular income tax rate.

Thu, 12/13/2012 - 18:14 | 3061004 NidStyles
NidStyles's picture

If you do it right, you don't even pay income taxes.

Thu, 12/13/2012 - 18:33 | 3061045 akak
akak's picture

That goes without saying.

;-)

Thu, 12/13/2012 - 16:55 | 3060803 Ulf Murphy
Ulf Murphy's picture

http://www.irs.gov/publications/p17/ch16.html

 

Look 60% down under "Collectibles gain or loss".  Both "metal (such as gold, silver or platinum bullion)" and "coins" are taxed at the 28% collectible rate.

 

Or look under IRC 408(m)(3)(b).

1031 won't help you in tax court.

 

Thu, 12/13/2012 - 17:51 | 3060914 akak
akak's picture

Please learn to read and stop with this "always 28%" bullshit already!  GOD, I am tired of endlessly reading that misleading and incorrect crap!

One's precious metal profits are taxed at 28% ONLY if their total income puts them at or above that same income tax rate --- for those of more modest (normal) incomes, one's precious metal profits are only taxed at their prevailing income tax rate, as normal income.

From the IRS link above:

Example.


All of your net capital gain is from selling collectibles, so the capital gain rate would be 28%. Because you are single and your taxable income is $25,000, none of your taxable income will be taxed above the 15% rate. The 28% rate does not apply.

Thu, 12/13/2012 - 17:37 | 3060926 SilverRhino
SilverRhino's picture

By the time I actually expect to SELL gold and silver there wont BE a US Dollar around to try and tax me on. 

 

Thu, 12/13/2012 - 18:16 | 3061007 NidStyles
NidStyles's picture

Helps me just fine every time I get audited... It's all about how you keep your paperwork and records. I swear some of you need better accountants.

Thu, 12/13/2012 - 16:23 | 3060641 I Am Not a Copp...
I Am Not a Copper Top's picture

I lost my train of thought

Thu, 12/13/2012 - 14:35 | 3060169 The Axe
The Axe's picture

beware the Central bank attack on GOLD....3 times they have bitch slapped gold down hard in asia....they hate that people are buying metals....great ready for a down hard...weak hands out.....coming     gold    down 75 bucks before Christmas....

 

 

Thu, 12/13/2012 - 14:52 | 3060262 DosZap
DosZap's picture

beware the Central bank attack on GOLD....3 times they have bitch slapped gold down hard in asia....they hate that people are buying metals....great ready for a down hard...weak hands out.....coming gold down 75 bucks before Christmas....

 

And watch how FAST the Asians buy it up, especially the Chinese, and the Indians.

All headed EAST,never to return.

Thu, 12/13/2012 - 21:36 | 3061514 Xanadu_doo
Xanadu_doo's picture

fuck all I hope you're right

BTFD

bitchez...

Thu, 12/13/2012 - 14:36 | 3060171 SgtShaftoe
SgtShaftoe's picture

I simply don't know where they're getting the silver to keep this up.  I know the gold is flowing out of the vaults.  Where the fuck are they getting it?  Is it coming from industrial sources?

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