Fiscal Cliff scare over done. Gold and Siver are over sold.

By komalsri on Fri, Dec 21, 2012 - 10:00pm

The market has over sold Gold and Silver on the grounds that the fiscal cliff is looming. But Boehner pulled a boner with Plan B and the Republicans have lost the initiative.

Gold and Silver will have a spectacular Christmas week and New Year.



Adam Taggart's picture
Adam Taggart
Status: Peak Prosperity Co-founder (Offline)
Joined: May 26 2009
Posts: 3277
Silver sales 50x greater than gold

Eric Sprott just released a report showing how the availability of above-ground ounces of silver for investors to purchase in a given year is only 3x greater than that for gold.

But the data from the US mint shows that investors are buying 45x more ounces of silver per year than gold.

Sprott's own purchasing efforts made through the Sprott Physical Gold and Silver Trusts also see investor demand for silver vs gold at a similar 43x.

Additional evidence leads Sprott to conclude that the true ratio could be as high as 55x.

Sprott does not see this imbalance as being able to continue at the current price level for silver. In short, he advises "following the money" (i.e. increase your silver exposure) in anticipation of a rise to a much higher $/oz for Ag.

Read the full report here.

Grover's picture
Status: Platinum Member (Offline)
Joined: Feb 16 2011
Posts: 913
Temporal Marker

Clif High over at has been scanning posts at blogs for years to identify and catalogue changes in language. From these changes, he has been able to make specific predictions with a success ratio much better than chance. About 2 1/2 years ago, he was saying that silver would trade for more than $600 per ounce and listed some temporal markers that needed to come about. One marker was that fire fighters would be in a fight. CalPers represents most Cal State government workers and is fighting San Bernardino's bankruptcy. He says that fire fighters will be arising in media over the next few weeks. Today, I heard about fire fighters getting shot in upstate New York while responding to a fire.

Here is a link: This post from him is quite subdued; however, you should note that Clif has language and views that wouldn't be acceptable on this site. I read his work with interest, but keep it in perspective. When I read snippets that generally fit with my expectations, I pay a bit more attention.

I can't say that silver will trade for more than $600 per ounce, nor that it won't. My last purchase was right before the elections when silver was about a buck an ounce higher than now. I agree that the fiscal speed bump is way overblown. At some point, the state of silver will come to light and prices will rise. It is better to buy when it is cheaper and available.

If I were looking to add some metal, I'd order some today.


shizah's picture
Status: Member (Offline)
Joined: Dec 19 2012
Posts: 6
Silver Undervalued

I've head Eric Sprout speak and his analysis on silver is very interesting. I agree with Eric and think that silver has the potential to move up more in price than gold. If you just look at the amount of silver that is mined each year because of demand and the uses of silver in many products - it seem logical that there is room for silver to move.

Here a wiki article that talks about the industrial uses for silver -

When you look at that and compare that to the industrial uses of's an eye opener.

Take Care!

nick707's picture
Status: Member (Offline)
Joined: Jan 3 2013
Posts: 4

Has anyone been thinking about platinum? I have and it seems to me that it's uses are ever expanding, from vehicle exhaust systems to the petroleum industry. Along with the fact that it is very scarse. Any thoughts?

ScottT's picture
Status: Bronze Member (Offline)
Joined: Nov 2 2009
Posts: 48
Silver is cheaper than gold

This makes a lot of sense to me as a small time PM investor.  Since someone can buy ~55 units more of silver than they can for one unit of gold one feels like they are actually "getting something" when the sleeves of silver arrive at their door.

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