Re: Something is out of whack
in response to
by
posted on
Feb 15, 2010 11:38AM
Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
Not just with the Gold and Silver relationship!
The relationship between the two has fluctuated, in terms of FIAT, from a high of almost 95, to a low of just over 50 to 1, in that time.
Gold and Silver have shown the most consistent returns in FIAT for the last 10 years,(both averaging over 10%/annum) but they still cannot attract more attention from the markets.
Why?
My theory is very simple! It has nothing to do with TA, astronomics (with apologies to BigPic et. al. ), and everything to do with societal fundamentals, and especially demographics.
Most traders are between the ages of 18 and 45 (maybe 50).
The last time gold and silver "went wild" most of todays traders were not even born.
Do not expect them to understand the history behind gold and silver, because over the last 30 years, the teaching of history has been considered taboo in most schools.
So who is buying?
Definitely some of those who remember!
Some of those who have studied history!
Most of those who have access to "wise old owls", but not all.
Not the majority of individuals who deal with traders.
Gold is still looked at, by banks and their "ilk", as a barberous relic and they will not recommend, because it contravenes everything they promote. Hence the majority do not get exposed on a daily basis.
As long as everyone keeps looking to "make money" from the markets, gold and silver will struggle in volume traded, and pm shares will struggle for the same reason.
For the sector to really catch fire, the ability to dismiss their relationship to FIAT needs to be promoted.
The only other way the sector will become "hot" is from fear of losing value.
In other words, this sector is the ultimate reactionary sector, not like the I.T. sector was, or commodities are etc.
This sector, at this time, is NOT based on supply and demand like most sectors.
It will explode quite suddenly, when the whole market system comes under attack.
Until then, my advise is to be patient, keep buying and holding and only sell if you need FIAT to pay expenses.
Good Luck to all!