This week each year is often one of the most difficult for gold and silver as the world’s largest physical market is closed during the Chinese New Year holiday. And subsequently this drop in buying volume aids the bullion cartels in their ongoing quest to keep prices at their current levels, or even to push them lower.
For the most part after a strong decline in the gold price following a boost to the dollar on Monday and Tuesday, the price of gold over the rest of the week held steady in a range of between $1325 and $1335.
Yet while the price of gold remained somewhat steady in its current range, silver was not so lucky. And even though it was pushed lower by only .25, this was enough to drive the Gold to Silver ratio well over 80:1, and at its highest level in several years.
Silver remains one of the most undervalued assets in the markets, and its upside is extraordinary given that supply issues are leading many producers to seek the miners directly in their demand of metals.
As investors in the U.S. and Europe continue to live by a philosophy of momentum trading, the real profits are always found in assets that reside under the radar, or are depressed in price far below their true values. And right now there are very few value investments out there that can compete with either gold or silver.