Market Anthropology: Boom-Bust&Bounce

Friday, August 23, 2013

Boom-Bust&Bounce

October 2012

It’s been a while, so we thought we’d check back in on our silver:gold ratio comparative with the Nasdaq bust in 2000. Although the performance comp of the ratio did not retrace the entire move subsequent to the October 2008 low, momentum appears to have turned the corner higher where we had expected it would last October (see Here). 

In the end, the correction in the precious metals market culminated with a retracement of gains subsequent to QE2. As mentioned in previous notes (see “The Retest & QE2 Retracement – Here), this contributed to us becoming progressively more bullish on the sector.