by Dan Norcini
Trader Dan Norcini
We have said for some time now that Silver will only benefit in a period in which inflation is the main fear and not deflation. That of course implies that the bond and note markets will begin pushing rates HIGHER out of inflation fears.
With this is mind, observe the following chart comparing the price action of Silver to the Yield on the Ten Year Treasury Note. The Silver price is the lighter colored line while the black line is the yield on the ten year. Note how uncannily similar the chart patterns are of the two beginning near the month of October 2010. Why is this? Simple – if interest rates are rising the fears of a slowdown are receding. Silver tends to benefit in such an environment.