Friday, April 1, 2011


Silver/Palladium Ratio

Near the end of 2010 I was personally interested in acquiring a little bit of palladium and before I did I wanted to see how it matched up with a ratio towards silver. After seeing this chart, I have decided to pass and it has worked out so far. The ratio is 100oz silver for 1oz of Palladium and thus this tells you how much Palladium you are able to get with one hundred ounces of silver. It seems this chart is likely to continue to move higher as the big push lower from 1997 that lasted around three years was that of a failure and managed to make it back to the top end of the range. I have also drawn in a parallel trend range which I would guess will act as resistance for a few weeks and then burst through. Of course this only a guess and if silver is supposed to have these fantastic up moves, then I will continue to guess that they will outperform all other metals and thus personally I am not ready (quite yet) for a trade of silver for Palladium.

1979 Comparison Update

If we are to make this fifty dollar level that many people are talking about for silver and stay within' this comparison to the 1979 breakout that netted 700% to it's top which also happened to be $50.00 in January of 1980, then we would need to make it to this level in the next four or five weeks. If we fail to do so this means that either the comparison will be downgraded from over performing 1979 to under performing in a flash. The tale of the tape also shows the big massive move which should take silver over $100 would not only have to happen this year, but this summer. I will continue to keep an open mind on this situation as Mark Twain has stated before, "History does not repeat itself, rather it rhymes." and so far the comparison has been an amazing rhyme to how it performed back in the day and fundamentals and technicals to support this big move higher is also in play.

A move of this level may sound fast and unrealistic and I will definitely agree that it would be fast to a degree that making moves of a few hundred percent gains in a few months is unobtainable. The reason why it is possible, because this comparison is working with history and if it happened before then it is possible and plausible. Another reason why i don't think this is very fast is because we are now on the three anniversary where people should have known how money is created and why silver is a great investment. If you search on the internet for documentaries like "Money as Debt", "Zeitgeist Federal Reserve" you will notice that these came out before 2008 and many VLoggers like VisionVictory, ManofTruth helped spread the light in 2007 and 2008. Therefore if you happened to be late on the ship for understanding how money is debt and the prices of gold and silver being suppressed, then you can consider yourself lucky that you got in the silver boat before it really took off.

Coming later this weekend will be the ratios for gold to silver and palladium to silver as well as a video on Sunday probably. Thank you for stopping below and the Friday video is below

1 comment:

  1. Thank you very much for sharing with us your technical analysis.