They both rose, perhaps a bit too aggressively, and are now settling down for the wait until after the FOMC meeting. .25 or a stand still. Can't really see another .5 decrease happening but then again the last one shocked most analysts.
My expected path for gold and silver is a breather/mild sell off, then a rocket ride higher with gold taking out $840 and silver blowing past $15.00
More about Silver:
I think Silver has the power behind it to hit $20 by early next year. Silver rose about
$.90 over a one week period. That shows incredible strength and money behind the move. After some breathing time, the same funds and more have firepower for more upside. Especially considering the pronounced down trend with the dollar.
From $15 to $20 is a 33% increase and a huge move for most categories, except silver. On a normal pattern, Silver can outrun gold 2:1. A 20% move in gold can easily see a 40% move in silver.
Gold to silver sits at a 55:1 ratio. It has recently traded at 48:1 a few years ago when silver was trotting. Getting to a less extreme ration of 50:1 puts Silver at $15.66 with gold at $783. When gold rushes up to $840, Silver would be at $16.80.
That is a short 20% leap to the $20 mark. If silver breaks down below a 50:1 ratio and starts towards its normal ratio of about 16:1, at the very least, we would see our long forgotten $50 silver at the bat of an eye.
What could create this neo-Huntian demand? War and an awakening public.
The latter is a doubtful and mercurial sort, prone to show up late if at all.
The former is as sure as a winter chill in January, and shows up early every time, habitually overstaying its unwelcome.
Every gear and bearing of war demand Silver for the greatest killing power.
It should be devoted to friendly, mutually beneficial exchange - money. Instead, Silver has been conscripted to sink ships, plans, lives, and dreams.
Get some silver and use it the right way. Make some money with it.
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