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A Change in Character

By: Erik Swarts | Friday, August 9, 2013

Despite an air pocket earlier in the week, conditions in the precious metals sector continue to improve. Most notably, silver has taken the baton and is starting to strongly outperform gold.

Silver:Gold Ratio Chart
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Copper 2010- Present versus Copper 2006-2010 Chart
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Gold 2004 versus Gold 2013 Chart
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Buttressing this momentum is the swift recovery in the gold miners this week, which as of this morning have recaptured their 50 day sma. Having both silver outperform gold and their respective miners outperform spot prices is a significant change in character for the sector. Onward and upwards.

2008-2009 BKX versus 2012-2013 GDX Daily Chart
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XAU Gold and Silver Index 2004 versus 2013 Daily Chart
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Author: Erik Swarts

Erik Swarts
Market Anthropology

Although I am an active trader, I have always taken a broad perspective when approaching the markets. I respect the Big Picture and attempt to place each piece of information within its appropriate context and timeframe. I have found that without this approach, there is very little understanding of ones expectations in the market and an endless potential for risk.

I am not a stock picker - but trade the broader market itself in varying timeframes. I want to know which way the prevailing wind is blowing, where the doldrums can be expected and where the shoals will likely rise. I will not claim to know which vessel is the fastest or most comfortable for passage - but I can read the charts and know the risks.

I am not a salesperson for the market and its many wares. I observe it, contextualize its moving parts - both visible and discrete - and interpret.

I practice Market Anthropology - Welcome to my notes.

Erik Swarts is not a registered investment advisor. Under no circumstances should any content be used or interpreted as a recommendation for any investment, trade or approach to the markets. Trading and investing can be hazardous to your wealth. Any investment decisions must in all cases be made by the reader or by his or her registered investment advisor. This is strictly for educational and informational purposes only. All opinions expressed by Mr. Swarts are subject to change without notice, and the reader should always obtain current information and perform their own due diligence before making any investment or trading decision.

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