Very quick update on silver
Just a very quick update, further to my various posts last week on silver, to say that, for all the sell-offs we have seen in the broader markets, silver has held up remarkably well. Surprisingly so.
The S&P500, as I’m sure you are aware, keeps on selling lower - it’s lost several hundred points since last week - and you would normally expect it to bring silver with it. Yet silver, somehow, has managed to hold up around the $19.50 area.
It’s silver so it will probably go to zero five minutes after I send out this email, but, I have to say, that is a positive sign of relative strength. The augurs are good.
If you want to read my previous thoughts on the subject from last week, they are here and here. My guide on how to how to buy silver is here:
Due your own diligence, this is not regulated investment advice, I don’t know your personal circumstances - all the usual disclaimers apply. Most of all this one: it’s silver. If it can disappoint, it will.
Hey Dominic. Typical that Silver punched you in the face after you posted this earlier today. ;) What a day for those of us heavily long the USD, but it sucks for the UK and anybody who lives here (including me), and today's price action in Sterling is very concerning. I have close Family who are not hedged up to their eyeballs in Dollars and Gold, and today's market moves have shades of 2008 and March 2020 about them. The VIX seems poised to enter what Keith McCullough of Hedgeye refers to as "The F*** Bucket of Volatility", and that's pretty much what happens to all equities in all sectors once VIX moves above 31. Speaking for myself, I'll be watching both the energy and precious metals sectors for signs of relative strength in the face of any further more disorderly market declines. The part of my portfolio I actively manage hit new 2022 highs today, and this would not have happened if I hadn't been so long the Dollar. Will be looking for opportunities to layout the gameplan for my next play when Jay Powell is effectually forced to pivot. Hope you got through today okay.
Gold/silver ratio at 95 did look extremely cheap over recent weeks. Trading around 85 this morning so still plenty of room left to get back to historic mean levels in the 60s. If it goes to zero as your post today inevitably implies, my plan is to corner the market 😀