Stocks and the dollar can appreciate at the same time... as they have been for the last month:
SPX vs UUP long dollar futures etf
I like you theory that gold might correct over silver,.for the historic ratio.. I think both go higher from here.
I am buying silver right now and very very surprised how difficult it is to get physicall silver(at least here in south america). All i can get my hands on is this pure " popcorn" silver, quite pretty by the way. For bullions I might as well be asking alliens.
Don't bank on the ratio history theory holding up. I was betting on $6 NATGAS by end of this year. The price did spike up to $6 back in the summer... but did not hold.
The historic price ratio of crude oil to NG has typically been about 7/1. Currently is's a ratio of about 20/1. I've been banking on NG catching up to oil for years now... it's not happening. Just as likely that the price of crude oil is the one that could correct. Ad doc has pointed out many times... crude oil is way overpriced and could easily correct to $40... I don't disagree.
That goes for silver/gold ratio, silver may well hold up, whild gold becomes the one to correct.... if if if the historic ratio comes into line.
I agree with doc that silver pricing at this point in time has been lifted by speculators. No way supply and demand sent silver up over 50% in four months.... think about that. Silver has been under $20 for years and years....about 30 years to be specific.
Furthermore, don't bet against the US dollar in the short term. I still say the Euro Dollar is in much worse trouble in the short term. If the US dollar rallies and the Euro Dollar tanks... look out below for some of these commodites... and equity markets.
Needless to say, I'm very cautious right now.
Lol, I actually bought 2 kilos of "popcorn" silver this morning. I paid $1350 per kilo , did i get a good deal ? Prabably not ! Will buy more when i get get my hands on bullion, not an easy task here in Patagonia, also attempting in Buenos Aires.