Transcription
If the paper market still sets a price, what is the exact kind of mechanism that takes silver to $300?
Ultimately, if you see a difference between the quote paper price and the the bullion price, you know, they're both going to go up. Basically, whatever that difference could shift, the spread relation could shift, contract, widen, whatever. Uh, that's really not the fundamental driving it. The fundamental driving it again is the historic underpricing of silver relative to gold, underpricing of silver relative to copper, underpricing relative to money supply.
And yes, gold is is the mama, but right now, technically speaking, as of last November, when we gave our last buy signal, $56 silver on the close of that month, it was based on silver breaking through a 10-year wide ceiling of resistance on its relationship to gold. Where we divide silver into gold, 1 oz into 1 oz, express it as a percent, plot that each month. That for 10 years, there had been a ceiling on this spread at very low relative valuation levels for silver. We broke through in November. And we have not given it back, by the way. That spread is still well above the breakout. It said, "Now is time to buy silver rather than gold."
And I think that will be ongoing, especially for the next handful of months, where silver will vastly outpace gold. And with the silver miners, we'll outpace the gold miners as well.
What are conventional Wall Street models kind of missing that your momentum charts aren't picking up? And is there anything that it breaks your thing?
I do note that, for example, you know, as I said, gold has eightfold moves, okay? And if you go eightfold, you're 8,500, okay? Well, JP Morgan several months ago came out with a report, and I didn't even read the details of it. They said they thought that gold could be 9,200. And a lot of these banks that have these monthly reports on gold, they always say that they be shift them up, but it's always by 100 bucks, 200 bucks. None of them have the horizon that something dramatic is going on here. This is: we're not going to You're not going to tick your way up for years. Silver did that just to get back to 50 again, okay?
But when you enter that phase late in a bull trend where suddenly reality hits, the fundamentals start to cascade like a T-bond crisis. [clears throat] Stock market, oh my gosh, it's not making me money anymore. All these factors come into play. Then suddenly the money rushes. And yes, there's emotion, and there'll be a lot of headlines. But it won't be those headlines that cause it. It'll merely be those headlines and seeming data points that merely reflect what's already been going on.