Gyroscopic Investing

Usually, when the fear trade is on, gold does much better than silver, but silver has been performing very well the last few days.

That's sort of weird.

Silver is the poor man's gold. It's the double doomsdayer's delight. Does that help?

Maybe it has more to do with just the weakening of the dollar than the actual increase in silver.

herbgoat wrote: Maybe it has more to do with just the weakening of the dollar than the actual increase in silver.

Normally, though, when you see treasury yields falling and the deflation theme is percolating you will see gold outperform the other PMs. 

MediumTex wrote:

herbgoat wrote: Maybe it has more to do with just the weakening of the dollar than the actual increase in silver.

Normally, though, when you see treasury yields falling and the deflation theme is percolating you will see gold outperform the other PMs. 

There's been some speculation that silver shorts are closing out positions on strong Comex physical demand.  It's all speculation at this point and silver is a thinly traded market, so we can never know what's behind the daily machinations. 

I'm curious about this as well.  It seems like silver is one of those metals that begins to do well in the start of economic recovery, as it is used for an input to a lot of industrial processes.

Gold seems to be the metal that does well in all types of economic catastrophes, and silver rebounds out the other end.  Anyone with additional insight here?