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Veteran Contributor

Silver beans

In the old days their was a correlation between silver and soybeans.  With the computer trades that seems like a distant past, but will it. Does the move in silver forcast a drop in dollar value

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Honored Advisor

Re: Silver beans

"silver beans" I thought it was going to be a post about needing a rain  Smiley Happy  Beans must`ve hit bottom, yesterday corn down 8, but beans were treading water and silver is $19 from $15 when I last paid attention.  The Dollar remains "the cleanest dirty shirt", usually the Dollar drops and investors flock to metals and commodities.  It must be foreigners buying up precious metals because of their predicaments.

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Veteran Contributor

Re: Silver beans

I'm more surprised than most by the run in silver.

For quite some time, you could print money by just watching the COT's and when specs got to a certain lenght or had liquidated enough. Up and down.

Strange thing happened last year when specs were actually net short- something that never happens. I missed buying, thinking that wasn't something I recognized.

Still don't know. Some say that China is buying PMs to diversify away from the dollar but I can't substantiate that.

Thus far at least I've managed to not short it.

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Veteran Contributor

Re: Silver beans

https://markets.businessinsider.com/commodities/news/china-bought-more-gold-to-prepare-for-the-trade...

Probably more than anecdotal and probably not good news for beans if China is in the trade war for the long haul.

Gold at 6 yr high, silver only 2 year. Guessing silver is just expressing its more volatile nature.

 

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Veteran Contributor

Re: Silver beans

There's some belief that central bank buying/selling tends to happen (or cause) extremes, such as when the UK dumped its gold reserves at the bottom.

Sure don't see much inflation anywhere although I guess in a zero yield world gold not paying a dividend is not a factor.

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Highlighted
Veteran Contributor

Re: Silver beans

Moral of story- "can't miss" stuff never lasts forever. When it stops, get the #### away from it until you've got some idea what's going on.

This is something different.

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Honored Advisor

Re: Silver beans

Like free stuff ??

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