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 - 14:37 | 3060180 francis_sawyer
francis_sawyer's picture

no phyzz... Just contracts settled in joobux...

Thu, 12/13/2012 - 14:48 | 3060232 SgtShaftoe
SgtShaftoe's picture

If it's being settled in FRNs, why doesn't the comex go to cash settlement/blow up when Sprott and Central Fund, and phys buyers keep taking it off the market?  Annual production is constrained, and there's only so many oz above ground.  Again, where is the physical coming from?

Thu, 12/13/2012 - 15:30 | 3060427 francis_sawyer
francis_sawyer's picture

Same reason as everything else...

Despite the rhetoric... Nobody is interested in BLOWING UP the system... You continue to scrape off what you can for as long as the MSM & propaganda artists can keep the 'Snookie' & 'Honey Boo-Boo' crowd believing that the Emperor actually DOES have clothes...

It'll continue this way until it doesn't (&/or until the last penny has been plucked from the last steamroller)... End of story...

Spend your joobux while you got 'em... It's just a freaking currency for Chrissakes... Tho some still think they mean something... Better for you that they do...

Thu, 12/13/2012 - 16:25 | 3060660 DosZap
DosZap's picture

Again, where is the physical coming from?

It's PAPER dudes.................keep a hard hand on what you have,unless you have no choice.

Stop and think about where can you put fiat, and make sure it retains any buying power or protection( dont say TIPS Treasuries), because we know who controls the TOTAL fake stats(CPI).

Part of their GANG.

I know I am paying a min of 25% on average more for food across the spread than last yr,many items I have gone to store brands because I refuse to get screwed over name brand(when blindfolded for a taste test) damn hard to tell the difference.

Case in point, wife eats Quaker 1min Oatmeal,LARGE size was $3.50, 6mos ago, now it $4.80,beef and chicken,pork, are so high I stopped even buying it.

( bought 40+#'s ground chuck last year),damn glad.

3# Ground Chuck 80/20, was $12.00 a year ago, now it's $21.00.

Same large chain store.

Seafood???, FERgidaboutit.

Thu, 12/13/2012 - 17:06 | 3060842 Ulf Murphy
Ulf Murphy's picture

Where are you at? I am outside a large metropolitan area (4mm+). I bought the large generic minute oats at Aldi for $1.99 two weeks ago.  I paid .79/lb for chicken leg quarters, on sale, at my local chain.  I consistently get a whole pork loin for $2.29/lb (10 lb minimum) that I cut into chops, roasts and cubes at either Aldi, Costco or local butcher.  Use coupons, Watch for sales. Eat in season veggies, or better yet, grow your own.

In other words, BTFD.  You do it for PM's, why would you not do it for everything?

Thu, 12/13/2012 - 17:55 | 3060968 francis_sawyer
francis_sawyer's picture

Sounds to me like he's getting it blessed by a rabbi...

Thu, 12/13/2012 - 20:04 | 3061258 IrritableBowels
IrritableBowels's picture

Buy a chest freezer and a quarter beef/half hog, etc.

Thu, 12/13/2012 - 14:48 | 3060233 DosZap
DosZap's picture

I simply don't know where they're getting the silver to keep this up.

That's the point, they DON'T have it!!!!!!!!!!!

The supply is damned near extinct in real world supply.WHY do you think they are attacking it constantly?.

If someone came in and orderd 2 million ounces THEY COULD NOT deliver it!.And if the longs demanded physical delivery, they would have to pay them in fiat.

Thu, 12/13/2012 - 14:52 | 3060254 fonzannoon
fonzannoon's picture

The question above by the Sgt is a good one, and Sprott is a good example.

Thu, 12/13/2012 - 15:25 | 3060416 SgtShaftoe
SgtShaftoe's picture

When physical is continually taken into strong hands, you can't have a market consisting only of paper.  It would blow up.  They can only use manipulation tactics to amplify the effects of dumping their stockpile into the market, so as to use it as efficiently as possible.  However, when they run out of physical to dump, paper manipulation will cease to work very rapidly, the system will simply explode.  

Thu, 12/13/2012 - 15:30 | 3060447 Bohm Squad
Bohm Squad's picture

We'll find out soon - Sprott has contracted for delivery of 7.127 million ounces.


The Link.



Thu, 12/13/2012 - 15:39 | 3060485 AgShaman
AgShaman's picture

The "longs" can't force themselves to shat in their beds....or burn down the casino that provides the "fix" to their addictions...

depending on how you look at it.

When the Investment Bank vaults run dry....they will position themselves as the new "longs" and the "remoras" that have toughed it out rolling contracts may be able to ride their waves/wakes and cash in on their fiat dreams.

It doesn't guarantee any of them will be left holding any physical when the music stops and the search for chairs commences.

Not that it matters anyway. Fiat whores are "confirmed" in their respective religion....

Just like us PM bugs

Thu, 12/13/2012 - 14:52 | 3060253 SILVERGEDDON

It is called paper silver. Re - hypothecarted toilet paper bullshit one hundred times over actual metals backing the poo paper. Leverage plus robo trading equals disproportionate leveraged trading equals manipulation equals jail time some day for some folks. After the fall. Not before.

Thu, 12/13/2012 - 15:20 | 3060394 SgtShaftoe
SgtShaftoe's picture

I know, but people are still taking the physical off the market.  Regardless of what the paper markets do, at some point, the ponzi blows up when the manipulators deliver the last oz from the vault.  Annual mine production is constrained, and it appears that more physical is being taken into strong hands than actual mine production.  The US Gov used to keep silver stockpiles in West Point, and the Denver Mint, how much, nobody knows.  

When physical demand is greater than annual mine production, at some point the ponzi ends.  It just depends how much stockpiled silver was in the vault.  US government holdings of silver are secret, but it appears they're probably shoveling it out the door.  What they can shovel is finite, and once they run out, even with paper manipulation, the physical market will eventually freak the fuck out. 

Thu, 12/13/2012 - 22:57 | 3061746 delacroix
delacroix's picture

the us mint sold something like 12% more last year than the entire U.S. yearly production. canada was something like 14%. china and russia keep all of theirs in country. the remaining suppliers have got to be stretched pretty thin.

Thu, 12/13/2012 - 14:36 | 3060176 youngman
youngman's picture

I bought gold today....silver yesterday....oh me the fundimentals still look good for PM´s.....way good.....this is the casino players playing and the long term we will win the game and the casino will close

Thu, 12/13/2012 - 14:37 | 3060179 swissaustrian
swissaustrian's picture

Hedgie liquidation going on

Thu, 12/13/2012 - 14:37 | 3060183 Dr. Richard Head
Dr. Richard Head's picture

Too soon?  Shit     113

$1,771.99 $200,234.87 Subtotal: $200,234.87 S, H, & I: $0.00 Taxes: $0.00 Discount: $0.00     Total: $200,234.87
Thu, 12/13/2012 - 16:32 | 3060692 Richard Head
Richard Head's picture

You bought 113 ozs of gold?

Thu, 12/13/2012 - 17:06 | 3060845 Dr. Richard Head
Dr. Richard Head's picture

That is how much fell out of me canoe.

Thu, 12/13/2012 - 20:11 | 3061279 IrritableBowels
IrritableBowels's picture

Pics or it never happened.

Thu, 12/13/2012 - 14:38 | 3060185 Slewburger
Slewburger's picture

Like how QE4 double bonus plus good is announced and Ag gets hammered.

Thu, 12/13/2012 - 14:40 | 3060192 Platinum_Investor
Platinum_Investor's picture

Silver is easier to manipulate.  Smaller market.  This is just plain illegal crap!

Thu, 12/13/2012 - 14:40 | 3060193 swissaustrian
swissaustrian's picture

Yesterday it was the other way arround: gold unch, silver up 1.5%.

Thu, 12/13/2012 - 14:41 | 3060198 Platinum_Investor
Platinum_Investor's picture

It's a good thing the Fed announced they will be expanding their balance sheet by $1 trillion a year otherwise Gold and Silver would be down double today.

Thu, 12/13/2012 - 14:43 | 3060202 muppet_master
muppet_master's picture

PMS down today

specially down from yesterday's QEorganizer's QE4 announcement.  I'll PATIENTLY (year 2016??) wait for gold @ sub $350 and silver @ sub $3.75 they won't go straight down

gold might be "outperforming silver", meaning that silver will be down -90% from current levels and gold "only" down -85%

 today Au = -1.% Ag = -3.5% or so

Thu, 12/13/2012 - 15:22 | 3060405 s2man
s2man's picture

If something goes down a negative percentage, doesn't that mean it went up?  ;-)

Thu, 12/13/2012 - 14:43 | 3060208 buzzsaw99
buzzsaw99's picture

bearish for gold imo

Thu, 12/13/2012 - 14:44 | 3060216 MFLTucson
MFLTucson's picture

The clowns are at it again.  More money printing, more confsetti, more debt means higher dollar lower Gold and Silver?  ahahahahahahah!! 

Thu, 12/13/2012 - 14:50 | 3060244 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

I just calculated before coming across this post.  For the day silver down 4.1%.  Gold down 1.25%.  A few days ago I looked at spot prices from many years back.  Platinum prices were twice as high as those of gold.  The perception of silver and platinum being industrial metals is killing them "for the moment".


Thu, 12/13/2012 - 14:57 | 3060285 donsluck
donsluck's picture

Unfortunatly I think this may all be priced in already. It will take another financial accident to force gold up again (and MAYBE silver). But don't forget the patteren: accident-drop in PMs-dramatic rise in PMs.

Thu, 12/13/2012 - 16:08 | 3060599 DosZap
DosZap's picture

 It will take another financial accident to force gold up again (and MAYBE silver).

Well we wont have long to wait, because Europe is about as close to the edge as it can get.'

And Obummers already said ANY gain from tax increases 75%+ will be spent on NEW spending, not deficit reduction.

Face it, the entire global cartel of fiat printers are sitting on a cliff they will never get up from, w/out a re-do.

Thu, 12/13/2012 - 14:48 | 3060229 A. Magnus
A. Magnus's picture

Does anyone consider the obvious - that the Fed is taking those extra monthly QE payments to monkey hammer PMs so the elites can stack with impunity? That would be my first guess...

Gold, bitchez!

Thu, 12/13/2012 - 14:48 | 3060236 fuu
fuu's picture

Where the silver bitchez at?

Thu, 12/13/2012 - 14:56 | 3060269 SILVERGEDDON

In your face, monkey boy. Live by the paper, burn with the paper. your time is gonna come.

Thu, 12/13/2012 - 14:57 | 3060289 fuu
fuu's picture

You think I like silver paper? You are an idiot.

Stack it up or get the fuck out.

Fri, 12/14/2012 - 18:27 | 3064751 SILVERGEDDON

I am all about stacking, dipshit. Thought you were calling us out a la MDB, laughing about a temporary downward ripple in metals.

Thu, 12/13/2012 - 14:55 | 3060276 caimen garou
caimen garou's picture dont see any problem here with gold/silver other than paper chasing  fools getting knocked out buy the paper creating fools!

Thu, 12/13/2012 - 14:55 | 3060278 DosZap
DosZap's picture

At this point ANY substantial drop is a Xmas present, so if you get the chance load up the wagons.

Thu, 12/13/2012 - 15:06 | 3060323 pimpmysteel
pimpmysteel's picture

just in time for my bonus to hit. was hoping for some kind of a smack down before it hit. looks like my wish is coming true.

Thu, 12/13/2012 - 15:02 | 3060310 Bastiat009
Bastiat009's picture

Congrats to ZH for finding a way to print "gold outperforms something" today. To what will it be compared next? 

Thu, 12/13/2012 - 15:03 | 3060317 fuu
fuu's picture

Your IQ?

Thu, 12/13/2012 - 15:58 | 3060386 Bastiat009
Bastiat009's picture

:-) ok, I like your answer and I guess you think I am extremely intelligent so that gold can be compared to a huge number. Or you may think I am stupid in which case gold will outperform a very small number. 

Thu, 12/13/2012 - 16:07 | 3060592 fuu
fuu's picture


Thu, 12/13/2012 - 16:18 | 3060644 Orly
Orly's picture

When gold gets compared to tulip bulbs and Beanie Babies, that's when I'll just completely ignore it.

(As opposed to just kind of ignoring it and snickering to myself as I do now...)

Thu, 12/13/2012 - 16:32 | 3060697 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

"When gold gets compared to tulip bulbs and Beanie Babies."

You mean like 10 year treasuries that are 240 year highs!??

Thu, 12/13/2012 - 15:08 | 3060340 jmcadg
jmcadg's picture

This is a dream come true. Keep smashing it please, I can't buy yet.

And making silver cheaper in relation to gold.

I think I just came in my pants. Good job Blythe.

By the way I came in my pants because of silver not you Blythe, you big footed whore.

Thu, 12/13/2012 - 15:09 | 3060344 fiftybagger
fiftybagger's picture

Working according to plan.  My Priceline short is coming along nicely as well as Apple.  When they take the huge 100 point dump it will be time to cash in and flip it to Phyz silver.  Like taking candy from a baby :-)

Thu, 12/13/2012 - 15:10 | 3060348 krugergate
krugergate's picture

Maybe I should take the chart to the Bank of Nova Scotia - our Cdn bullion bank - and ask the grumpy lady at the counter whether I should buy more gold or silver today. I take great pleasure exchanging pieces of paper with numbers and pretty pictures on them for oz of gold and silver. Just sayin!

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