Has the central Fund of Canada Given Us Another Silver Buy Signal ?

IMG Auteur
Published : January 12th, 2012
248 words - Reading time : less than a minute
( 2 votes, 4.5/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Opinions and Analysis

 

 

 

 

I stumbled onto this little gem about a year ago and I think it is about to work its magic again. I am speaking of the ratio of the Central Fund of Canada (CEF) to the price of Gold. Please see the original blog post for an explanation of this CEF:Gold ratio.

This CEF:Gold ratio barely triggered a buy signal for silver on December 27, 2011. Of course, a "barely triggered" signal may be all we are able to achieve if silver is getting ready to rocket higher after a brutal but fairly typical (for silver) correction from the the spring, 2011 highs. Here's a chart of this ratio thru today's close to show the buy signal for silver (the top plot is the price of silver, while the lower plot is the CEF:$GOLD ratio):







Coupled with horrible sentiment for the restless metal and rampant fears of a deflationary collapse, I think the low is already in for silver. I give you this chart of money supply growth courtesy of shadowstats.com:







This type of monetary madness is what gave rise to silver's last run! We'll have to see what happens, but I think the CEF:Gold ratio will once again prove to be right. I like metal stocks over metal right now and silver over Gold. However, I like anything precious and metal-related at current levels. My subscribers and I are fully invested in order to profit from a further advance in the PM sector, so I am biased.

 

 

 

Data and Statistics for these countries : Canada | All
Gold and Silver Prices for these countries : Canada | All
<< Previous article
Rate : Average note :4.5 (2 votes)
>> Next article
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Take advantage of rising gold stocks
  • Subscribe to our weekly mining market briefing.
  • Receive our research reports on junior mining companies
    with the strongest potential
  • Free service, your email is safe
  • Limited offer, register now !
Go to website.