Silver Slumps To 6-Week Lows, Gold Ratio Surges

Tyler Durden's picture

Silver is slumping this morning, back below $19.50 at its lowest level in 6 weeks. Gold is fading also but remains coiled around the $1350 level for now. While both well above pre-Brexit levels, we note that the Gold-to-Silver ratio is recovering after slumping post-Brexit...

Silver is suffering...


Gold is more stable for now...

A triangle-shaped formation has kept prices in check since early July, when the metal traded between $1,310 and $1,370 an ounce. Now, gold is likely to move out of the triangle and start rallying, said Andy Pfaff, chief investment officer for commodities at MitonOptimal Group in Cape Town.

As the gold/Silver ratio jumps back to pre-Brexit 'norms'

As Bloomberg notes, Gold is poised to continue outperforming silver in the near-term after XAU/XAG broke out bullishly from a one-month triangle pattern this week, Bloomberg technical analyst Sejul Gokal writes, with a ratio of 72/73 as a short-term target (100-day moving average).

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Dg4884's picture

I'm a silver stacker.  Have been for years.  I know I should be happy to be able to stack moar at a lower price, but this is getting ridiculous.  So tired of the manipulation.

VinceFostersGhost's picture



Silver is slumping this morning,


I think I'm going to rake my unreasonable stock gains to buy some more silver.


Thanks.....whoever you are.

AllThatGlitters's picture

Yeah, just wait for the quick plunge that looks like a "technical breakdown," then buy it.

Live Silver Chart:

You'll buy cheap from weak "technical traders" that the cartel tricks into giving up.

AllThatGlitters's picture

Hey, a new PM Dealer slogan LOL: "Buy Cheap from the Weak"

wisehiney's picture

til that day when we wake to no more for sale

GunnerySgtHartman's picture

So tired of the manipulation

True, but us stackers take advantage of it.  :-)

Pickleton's picture

WooHoo.  I just happen to have a larger than normal stack of cash that I was going to convert to another stack. 


What do we think, it still has a bit more to drop or no?

actionjacksonbrownie's picture

Major inflection point today. If $19.20 is broken to the downside, Silver will be back to $18 very quickly. Personally, I wouldn't make any big purchases today. I don't see much short-term upside, and do see a possible $1 slide within a week or so.


Like all free advice, you likely get what you pay for.

SoilMyselfRotten's picture

Why would those numbers mean anything when we are obviously dealing with an OpEx smash? Guess we haven't seen this show before....

actionjacksonbrownie's picture

The Fundies watch the charts just like I do. They trade the charts and do all the heavy lifting for the fed. The fed doesn't need to be the market in order to control it - they just need to stand at various forks in the road and point. If they point hard enough, the algos and traders follow the lead and create the momentum to produce the smashes to the downside.


edit: Options expiry isn't until next Thursday, and the last few opex dates have actually seen the price of PMs rise on opex day.

RAT005's picture

I think your comment is dead on.  The Fed knows what they want with gold & silver prices and stands ready to print as many contracts as necessary to direct traffic at the forks.  Once the parade has been put in the right direction, the Fed can step back until they are needed again.

My free advice for what it is worth is stack cash until you think a smash is significant and then BTFD.  It just helps the ego to keep stacking if your prices are reasonable.  Eventually $17-$19/oz won't make a difference but until then it feels good to not buy too high and it helps add a few extra ounces.

Stack on, some day it will change your life, but who knows when.  This will probably last until TPTB think they have rigged a new game well enough that they can let PM rise to a more equitable price.

dusty88's picture
dusty88 (not verified) Pickleton Aug 19, 2016 8:31 AM

I don't try to guess.  I average in.  Use any extra cash for more ammo.  

The Count's picture

Just average in whatever amount you plan on converting. Buy some every week for the next couple of weeks. Its foolish to believe you can pick a bottom.

humanstakeaction's picture

Dollar is up .35%. Gold is down .98%. Makes sense to me. 

smokintoad's picture

My direct deposit checking account is reaching a six week high. Wonder what I should do?

E.F. Mutton's picture

Thank you Sir, may I have another?

wisehiney's picture

Scheming weasels - right into my trap.

cowdiddly's picture

Just another typical price discovery day in Niganomics land with incompetant leadership and lawlessness.

indygo55's picture

As the supply of silver and gold diminishes the efforts to destroy the faith in the precious metals increases. There is no "market" for the metals that isn't fraudulently minipulated by the PTB. Only gold and silver is money but that flys in the face of fiat currencies forced into use by legal tender laws and supported by a compliant and corrupt media. It is the last stand of the current system. All the technical and fundamental analysis is pointless. It will come down eventually to cash and carry. IMO.


jonebize's picture

What's with this fucking silver arbitrage though! When was the last time it was this high? 

Killtruck's picture

No shit! $0.64 difference East/West...very suspicious indeed. 

debtor of last resort's picture

My silver ain't in the Wall Street Shuffle.

American Psycho's picture

beep beep beep, Truck backing up

katchum's picture

Nobody is buying silver now, look at U.S. Mint Sales.

1stepcloser's picture

Are you calling me a nobody?  I purcahsed eagles..

Wow72's picture

Youll be lucky if they are real.  Probably just like everything else UNCLE SHAM PRODUCES just another FRAUD!


NikoBellick's picture

screw eagles I don't need Uncle Sammies guarantee on it. I stack private mint Silver.

TeaClipper's picture

Total sales of silver ASE for 2016 to the month of Aug = 28,150.500 Total sales for silver ASE in 2015 = 47,000.000. Given there is another 4.5 months to go i dont see there being a great deal of diff between 15 and 2016. The drop off since June is just people waiting to buy the dips. Probably an element of people hoping once the election is over prices will fall




TeaClipper's picture

BTW, i would just add, i just bought some beautiful Russian silver buiilon coins.  St George the Victorious 1oz. Only minted in small numbers, and so far only in 2009/10/15. You pay a premium for them but check them out, they are beauties

sudzee's picture


Must be some good stuff in Breitbart reporting of the hack of Killery's FDN. As you can see someone doesn't want the info out.

Reginald Blome's picture

Come on you sausage riders, push it back to 15 for me so I can buy 10k more ozs for the ol' stack!

Secret Weapon's picture

I am waiting for the Euro to implode which should take the relative value of the dollar way up.  That is when I will top off the stack. 

jakesdad's picture

bailin insurance is coming down - this is good!

Seasmoke's picture

So that's Slump #9501, since 2011. Seen it so many times, I may have lost track.

BurningBetty's picture

It's the daily gold-smash hour. The hour of reckoning for the dollar is closing in. The only thing the Fed has left is empty promises to affect the market short-term to levitate the dollar. As long as investors still have faith it will work...though the believers are growing thiner.

On the other side there are companies emerging out in the world who are offering currencies much like BitCoin and such which are backed by silver. Take a look at BookCoin for example. Their 3-year target for BookCoin is $10 per coin. It's over and out for Central Banks. The cat is out of the bag and the consequences are snowballing.

NEOSERF's picture

Forget gold and silver, hoard SPAM...when it comes down to it, those with gold and silver will have the currency that I will trade for my cases of SPAM

E.F. Mutton's picture

Funny you should mention that - I stack both.  Spam, Tuna, Salmon...

You can't eat shares of TSLA

Latitude25's picture

Funny you don't stack mutton or tasty lamb chops.

HoserF16's picture

Proof Positive that the powers that be are still in charge. Keep stacking. Eventually, industrial demand will force this multiples higher...

The Count's picture

Listen you fools: I have silver and gold, plus guns and bullets. Be sure you have enough CASH stashed away somewhere because when the house of cards comes tumbling down in the beginning at least, you will not get any gas or groceries with anything else than cash. Do not think the store clerks will give change for your Krugerrands :-)


In a real SHTF situation (do hope that wont happen) bullets will become the new currency. Used to be cigarrettes but not too many smokers left. I can see .223 easily going for 5-10 PER ROUND.

RawPawg's picture

on hand cash is only gonna have a shelf-life of maybe a day when the shtf begins

spend it only in that time frame. once it stop. cash is now instant fire tender/toilet paper

lakecity55's picture

Cash may last a bit longer but beware they may have new notes ready to go!

The Count's picture

True, you dont know what those knuckleheads have in store for us.

Latitude25's picture

Odd how gold round trips in price but silver doesn't.

Conax's picture

Silver gets it up the ass just like poor people.

The poor man's gold. The elites have lots of personal gold, they don't mind it moving up quite so much as silver which they hate.

dark pools of soros's picture

That old saying, 'Gold is for kings, silver for gentlemen.....'

well there are still lots of kings but not many gentlemen these days


JerseyJoe's picture

Easy the Cartel hates and fears silver.  

The CRIMEX open Interest in silver is over 1 billion ounces.   Very few miners hedge their silver after losing their shirts last bull run.  So most of this OI is naked shortig by the banking cartel.   

To put 1 billion ounce sold in perspective, the world's miners only produce about 800M ounces in recent years and this is set to decline with reductions in base metal mining where over 50% of silver comes from as a by-product.  

If you subtract China's mine production which doesn't get sold outsde China except in finished goods - this puts the yearly available silver even lower.    

Ted Butler makes a very compelling arguement that Bear Sterns collapsed due a margin call on a surge in the price of silver.  Bear was massively naked shorted and had no means to cover their short. 

The current CRIMEX is near its all time record high of just a few days back.   No other commodity in the world comes close to this kind of shorting.

Buy silver and help kill the cartel.  And it is great insurance against toilet paper money.