(click to enlarge)You've heard of Turtle Trading? Well this is Hedgehog Hedging :-). The recent ratio action has been so spiky and toppy that I just took one look at the chart and said "graffiti time!"
Slightly more seriously, it does look like the ratio is reversing here. A lot depends on the dollar action of course, but my general vague theory that paper prices for silver are moving up toward the physically traded metals prices (and not vice versa) is where I'm coming from. Right now Ag is U$9.97....I'm gunning for SLV at $11 and I'll take a position today. Time will tell whether buying GLD was the better choice, but I feel good about going back to SLV again....after all, these things are personal choices. DYODD dude.
Slightly more seriously, it does look like the ratio is reversing here. A lot depends on the dollar action of course, but my general vague theory that paper prices for silver are moving up toward the physically traded metals prices (and not vice versa) is where I'm coming from. Right now Ag is U$9.97....I'm gunning for SLV at $11 and I'll take a position today. Time will tell whether buying GLD was the better choice, but I feel good about going back to SLV again....after all, these things are personal choices. DYODD dude.