Market Curiosity: Exploring Markets And Systems

March 9, 2011

Followup – does SLW usually lead silver?

Filed under: Just Watching — Tags: , , — Jeff Fitzmyers @ 11:36 am

No. And possibly this is because of silver backwardation. It appears the scarcity of physical silver is dragging up the COMEX price which is dragging up SLW’s price. I think it’s supposed to be the other way around. 🙂 The longer a thing is suppressed, if the fundamentals remain the same, the more costly the suppression efforts until fireworks. SLW:Silver ratio chart link

This also highlights a caution with ratios that don’t necessarily include the impact of all events. Sometimes it’s best to just read observe a chart directly.

+ Caution warranted if long silver or silver stocks
+ Apparently silver stocks (SLW mainly) must lead silver

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