WallStreet proverb: buy 'em when nobody wants 'em. Although ... this from the Mogambo Guru if you want another reason to sell your own grandmother to get money to buy silver, and lots of it, then listen to what David Bond, associate editor at Free Market News, says. China, he says, has admitted that they have literally run out of silver, and now they need to buy it! A country so big that it has almost five times as many people as ours needs to buy silver, because we, a country that has five times fewer people in it, have used all the silver to get to where we are! I mean, the potential demand for silver staggers the imagination!
Say that SSRI is more a perpetual call on silver, while PAAS is a more conservative (better priced?) equity: SSRI shoul be more volatile then PAAS. The actual ratio is not that important. SSRI was priced the highest in april 2004, while the highest ratio on the chart is August while in the rebound from a pullback. What I want to show is the trend in the averages of the ratio. Up, or down? Both rising 50 and 200 DMA seem to tell: up. = SSRI attracts speculators again. Expecting silver to go up. Or is this too far fetched?