david morgan silver $30 ounce, page-5

No I am not gearing, I think silver price largely depends on gold, the gold to silver ratio currently sits around 63.7

If the stock market sells off hard, the GSR could get up close to 80.

I may consider a paper gold/silver hedge position if the GSR approaches those levels.

I don't like that gold and silver are so close to their support levels when the stock market is overdue for a correction and potential bear market.

We will be buffered to some degree because we buy and sell silver in AUD. (of course it may be different for you if you bought contracts in USD)

Based on the CFTC bank participation chart below I think we could have a good moving coming in the next few months in the absence of a GFC type event

As I pointed out in my long term gold assessment, gold needs to be moving up soon and gaining bullish momentum or we could have another leg down.

I think the bear market has served its purpose and taken out most if not all of the weak hands, particularly in the gold share space, but just like the gold market is running out of time to move up, the SPX is running out of time before the next bear market begins,

so if we have a slow bear in the SPX, then perhaps we can have a weaker USD at the same time, that would be the best bet for gold when the stock bear comes.

A brutal fast bear like we saw in the GFC saw indiscriminate commodity selling and USD buying.

Something like that developing as PMs hover just above their support could be temporarily devastating, seeing 1000 in gold and 13-15 in silver.

Considering what has happened to bulls in the last 2 yrs, more may throw in the towel, but I will be buying, my price to buy more gold will be $999 and below.

Overall the white metals silver palladium platinum have better fundamentals that gold.

Silver is a LT buy now and definitely at lower levels.

I am prepared for all directions, it has been ranging between 19 and 24 for a while now, i expect more of the same until technical levels of 18.50 or 25 are taken out.

What do you expect?