Silver Is Golden In August, As Gold Bests S&P Returns In Last Month

Tyler Durden's picture

In addition to the daily NEW QE/LSAP/ZIRP On again/Off again rumors, one of the most memorable aspects of a vacation-heavy August was the pervasive weakness in corporate top lines, coupled with a substantial portion of the S&P guiding lower into a very uncertain future. Perhaps this explains why when looking at the best performing asset classes of the past month, it is precisely those 'barbeque relish' vqrietals silver, and gold that shone, despite offering no dividends, and despite having not a single earnings call or forecast revision between them. Or perhaps in spite of.

As for Year To Date performance, it is easy to say that the two factors having the biggest impact on the two best performing asset classes of 2012 - wheat and corn - are those that have precisely nothing to do with actual fundamentals, namely the weather and CTRL-P'ing. Perhaps that explains why armies of once-gloriously paid analysts are now unemployed, playing COD and fondly remembering the times before central planning.

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ziggy59's picture

Silver! the other, other, white meat

tocointhephrase's picture

Playing COD. Tyler you are soooo 2010. Gears dude/s GEARS!!!! MARCUS FENIX WHERE ARE YOU WHEN I NEED YOU WITH MY GOLDEN RETRO. FUCKING NOOBS Physical Silver BiTcHeZ

ZeroAvatar's picture

That does it!  I'm never getting on another boat as long as I live!

Gief Gold Plox's picture

I said it before: Boats are the scourge of zerohedge readership.

Ghordius's picture

I also said it before: precious metals are evil. they force me to buy them and then the compel me to make trips where I loose them

erg's picture

When I first started stacking I thought it was some kind of ritual that precious metal holders did. Ya know, like how folks on motorcycles wave to each other.

So out I went on a clear, calm day and didn't my catamaran have narcolepsy induced cataplexy. The boat just suddenly flipped over. Damndest thing I ever saw.

*scratches head*

SilverNoob's picture

I am thinking of starting up a scuba diving recovery business just for ZH'ers. Boat with confidence and a relaxed mind boys!

Ghordius's picture

Oh. Please. Don't. If you go scuba diving where I lost my boats you won't find anything.

And it could only create me lots of problems with the insurance companies. They are already a tad suspicious.

"You lost a boat again, Mr. Ghordius? Like in the last sentence of that movie "The Hunt for Red October".

malikai's picture

I'm with you. How about you and I split up the eastern/western states? Which ones do you want?

SilverNoob's picture

Malikai, the east coast is all yours. I will take the west coast and the Bahamas...I like to keep busy.




Shhhh! This is an 'off the books' type of business....Don't ask, don't tell! 

Great movie btw! My father in law served on a Typhoon class. 

Dead Canary's picture

Hey...... I don't think you guys are losing your silver at all!!

Big fibbers.

malikai's picture

What is best in life?

EvlTheCat's picture

To crush the bankers, to see them driven before you, and to hear the lamentation of their women.

AvoidingTaxation's picture

"The greatest joy a man can know is to conquer his enemies and drive them before
him. To ride their horses and take away their possessions. To see the faces of those
who were dear to them bedewed with tears, and to clasp their wives and daughters in
his arms."

d_taco's picture

Game is on:

There are tree big questions, how high can we go and how deep we plunge and what will be net result.

For Brent I wait till we reach about 120 dollar and then go short. Risk are now high for a Strategic release and markets will soon realise what Netanyahu find out already, US president Obama is not the slave of Israel (like Romney), the Syrian game failed and the change of Israel not winning a war with Iran is 100%. Adding the fact that the Clintons will disapear from politics Netanyahu realize that he has to pay (a high price) for himself if he attacks Iran.

Have fun


DosZap's picture

US president Obama is not the slave of Israel

No, he is the slave to the 57 states...................he has made no bones about it.

As far as Israel not winning a war with Iran, or Syria, that is stupid.IF they decide that their country is in line for destruction, they will nuke the shit out of any Arab, or Persian state that tries.

Enter WWIII.


LoneStarHog's picture
SGT REPORT: Scotiabank Tries to Talk SilverDoctors OUT of Buying Physical Silver!

backhandtopspinslicer's picture

scotia = retail services in canada and mexico but not the ussa -- what gives?

apberusdisvet's picture

Scrape together what you can and stack before 9/12.   On that day when the German court rules for the crime syndicate, and it most decidedly will, it will unleash the greatest round on money printing ever seen.

If that isn't sufficient to stack, then there's always WWIII (coming), and imposition of martial law when the sheeple riot when  gas hits $10 (or more).

dvsteenk's picture

last 2h trading in CAC40 futures: 3425 plus minus 2 points - yes, 100% human....

flatline basically

Sudden Debt's picture

Let's see how it hold when the dollar strenghtens against the euro again. I only think silver will explode in 2 years from now when the dollar hits the wall. untill than, they'll manipulate it down for as long as they can.


Ghordius's picture

May I remind you how you were fretting that you would not be able to spend your Christmas money on silver? Methinks the speculative aspect of silver might surprise everyone. Method, SD, method.

Dr. Engali's picture

The longer that silver and gold stays out of the headlines the happier I am. I prefer to have this stealth move up while they continue to beat it up on CNBS.

savagegoose's picture

i got a  strange one for you, i loaded my boat up for a weekend out on the water,  but come morning my boat was stolen!  sure it was recovered the next weekend, but alas all stowages was gone. :(

Monedas's picture

Go to a marina and put a 22 calibre hole below the water line in all the yachts .... then hang around and see which boat owners hire divers .... there's the gold !

Snidley Whipsnae's picture

Stranger still... I was making a passage when suddenly a UFO took me and my canoe aboard... Whisking me away to Someanus, where my pockets were riffled for change.

The abductors said that they were searching for change they could believe in. We bonded quickly when I told them all earthlings were likewise occupied.

I was deposited unharmed on the far shore with a parting comment from the spacemen... "We will return when you people stop using barbarous fiat"...

Tales From Land and Sea   by Not Conrad 


Imminent Collapse's picture

Until JPM and others of its ilk collapse, the manipulation will continue. Count on it. TPTB cannot have gold and silver go to a market price. When that happens the fiat scam will become obvious to even the sheeple.

silverdragon's picture

Go Silver Go.

Lets hope TPTB are out of ammo and can't smack it down one last time.

Bottom line everyones piling into physical Silver with lots of zeros.

I hope that chunk of cash I am waiting for comes in soon and Silver hasn't taken off on a tear before I can load up again.

Silver is so f*cking beautiful.


thatthingcanfly's picture

Silver IS beautiful, isn't it. Gold too. Has a lot to do with why we consider them "precious."

When my daughter was 3, I held a 1/10 oz gold coin in one hand and a copper penny in the other and asked her which was prettier. She'd pick the gold coin (which was slightly smaller in size) every time. I didn't teach her that. We're born with these instincts. This is what I think of whenever I hear the metals referred to as barbarous relics. Bernanke actually came closer to the truth than when he referred to the holding of gold as a store of wealth as "tradition." I would substitute "human nature." You can't escape it.

silverdragon's picture

31.83, it's better than porn.

silverdragon's picture

I give one ounce Silver coins as a gift when my friends have a new born.

DanDaley's picture

I gave one to my magician brother-in-law for Christmas, but the damn thing disappeared.  Boating accidents have nothing on him.

Debeachesand Jerseyshores's picture

Go Silver,the poor man's Gold.

Buy all the PM you can,because it's only a matter of time before the SHTF.


Have a Happy Labor Day everyone....

Monedas's picture

YTD wheat beats silver .... how many bushels have you taken home in the trunk and stuffed in your safe ?     Silver .... not just another commodity .... it's the uncommon commodity !

bigkahuna's picture

It might be the poor man's gold - but measured in fiat, it has the potential to become pretty darn expensive.

oldfruit1's picture

silver bugs (& gold bugs) seem to hate the idea of benanke using qe (i do too) .. but the only reason silver is ramping higher is on the prospect of qe3 coming in september .. the market is positioning for take off in silver on 13 sept ..

ultimately silver will ramp higher, but please guys dont think silver is special, its performed better than other commodities & precious metals for 1 reason: silver bugs have piled into a commodity market which is thinly traded by industrial players & funds. the move higher has been a self fulfulling prophesy.

really silver should not perform much better than platinum or palladium which actually have more industrial uses than silver and are more rare.


tocointhephrase's picture

really silver should not perform much better than platinum or palladium which actually have more industrial uses than silver 


Name them..(i dare you)

DosZap's picture

really silver should not perform much better than platinum or palladium which actually have more industrial uses than silver

Only one, and non Industrial, money.

Also, according to many,many people in the financial world, we are set up for a total collapse globally.(and nothing can be done now, to stop it period,the currencies are all fiat and no way to save them.)

There will be no demand for much Plat, or Palladium.

 We are headed into Hyperinflation, sooner than later, and automobiles, and trucks are going to be at the bottom of most countries/peoples to buy list. (ok,to buy and hold both,if your fiscally able to do so,but not substituted for real honest money,not NOW.)

Plat could serve as a valuable asset,but when the fat lady sings, G & S will take the spotlight, until a reset (if there is one that is survivable). When he demand for physical silver takes over supply,which would you rather own.

I would love to be able to bet on a good outcome for what is upon us, and worse coming,but personally as a realist I cannot see it.


fiftybagger's picture

"but please guys dont think silver is special, its performed better than other commodities & precious metals for 1 reason: silver bugs have piled into a commodity market which is thinly traded by industrial players & funds. the move higher has been a self fulfulling prophesy."


What's wrong with the people forcing the banksters' hands by stacking silver?  You need to think about this some more.


Silver For The People

DosZap's picture

silver bugs have piled into a commodity market which is thinly traded by industrial players & funds. the move higher has been a self fulfulling prophesy.

Slvr follows Gold, and bugs are not the reason for the increase, uncertainty is,and the paper chasers.

The next MAJOR QE, if there is one, will be the pile in time on monetary metals.The value of which is caused by the continued drop in value of our fiat currency.

When thinly traded silver becomes really valuable is when demand outstrips supply,and then it cannot be manipulated any longer.

Also, platinum, and palladium has never been money,never will be most likely.

G & S have been the only TRUE money for 6000yrs.

oldfruit1's picture

the article posted by tyler yesterday on Quantitative Easing was brilliant as it highlighted that QE is partly about reflating asset bubbles, specifically the property market, as this would restore banks solvency with all the crap credit products still on their books.

the problem with the feds strategy is that they cannot control which assets will be inflated and i think silver is one market which is a bubble which is being inflated inadvertently, its a bubble which will probably continue to be inflated, so good luck to all trading/investing in this space but watch out for the other side when the bubble deflates. dont be that poor soul who gets left holding the bag (or your kids college money in the form of silver eagles under your mattress) .. saying but, but, but ..silver is a HARD asset?!!

tocointhephrase's picture

Silver up by under 1000% over 10 years and aapl (APPLE) is just under 9000% hmmmm spot the bubble

oldfruit1's picture

to coin the phrase .. sure this has been covered by the financial press, blogosphere, silver bugs and associated snake oil salemen till we are all blue in the face. to sum it up though, platinum/palladium used for catalytic converters, electronics, former also has some use in jewellery. silver is used in jewellery, photography (declining due to digital camera), solar panels, various novel antibacterial technologies. i think its important to bear in mind substitutability, who is going to use silver at $30 for jewellery? and solar panels /antibacterial tech will become ucompetitive with high costs, whereas emission regulations means certain parts of the world will have to use catalytic converters whatever the cost.

in reponse to which is in a bubble, silver or apple, the simple answer is both. however, apple has been producing profits which have grown exponentially over recent years, has silver been producing something which has grown exponentially to justify its exponential rise? the products its used for arent suddenly in huge demand (some of the newer applications are offset by the decline in photography in my opinion).

trade silver by all means but recognise that there is nothing special at all about it .. this silver worship cult is absurd.


The.Oracle's picture

The Silver Worship Cult.. aka Those Who Will Survive

americanspirit's picture

Silver and gold have been worshiped for about as long as people have worshiped invisible beings in the sky, and for many of the same reasons. You know you can depend on them when times are tough; you know that whever happens in the world there will always be plenty of people who feel about them the same way you do; and you know that they represent eternal values that no amount of earthly power can corrupt.