Commerzbank: We suspect the gold/silver ratio has peaked at 80

LATE REPORT

Gold gave back a portion of yesterday’s gains but by and large managed to hold its own today.  It finished at $1252.70, down $2.58.  Silver too gave back a bit finishing at $15.87, down 17¢ on the day.

One of the more interesting releases during the course of the day came from Germany’s Commerzbank. In its Bullion Weekly Technicals publication, analyst Karen Jones says “We suspect that the [Gold/Silver ratio] has peaked at 80.”  As for gold, using Elliot wave chart analysis, she projects a “5 wave” top for gold over $2000 per ounce and the bottom of the “4 wave” at $1168. Says Commerzbank on gold: “Our long term bias remains bullish.”

Quote of the Day
“The defining feature of the recent half-cycle is that monetary policy, regulatory policy and proposed tax policy have all very intentionally nourished the primitive, untethered, speculative Id of Wall Street. Freud called the Id ‘a cauldron full of seething excitations, striving to bring about the satisfaction of instinctual needs subject to the observance of the pleasure principle.’  That’s a reasonable description of monetary policy under Ben Bernanke, and much of what has unfolded under the current Administration.” – Jon Hussman, Hussman Funds

Commerzbank Bullion Weekly Technicals

RATIO SWAPS
If you agree with Commerzbank, perhaps swapping out of a gold position for silver at the 80:1 ratio makes financial sense. We invite you to call our Order Desk to review whether or not this makes sense for you (and/or your IRA). The premiums on silver coins and bars offer additional incentive at present.  We have a strong inventory position at advantageous prices we can pass along.

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