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Well, folks, I’ve just about had it up to the proverbial “here” with silver. I was truly looking forward, at long last, to being a bull on something, and not just for a day or two, but for months or even years. On Friday morning, at long last, silver seemed to have a mind of its own, zooming almost 5% higher in the midst of an otherwise humdrum market of other assets.

And yet, sputter, sputter, cough, the entire rally let out a huge, audible fart and yielded nothing. I got stopped out with a small profit, and psychologically I felt cheated and disgusted. Silver has screwed me over so many times at this point, I think I am done for good. This isn’t just emotional, though. There are logical reasons.

For one thing, silver is going to be at the mercy of gold (and indeed all financial assets), and gold isn’t exactly a bar-goon these days. On the contrary, gold’s launch to nearly $3000 has been almost uninterrupted, and it is way, way past due for a hard smack-down.

I also hadn’t bothered (and shame on me) checking Slope’s own correlation matrix, and precious metals do NOT live in a world of their own. They’re pretty much just another flavor of Equities for almost any time scale over the past five years.

You can see this represented in the comparison below of gold (blue) and equities (black). They more-or-less move the same direction, and starting about half a decade ago, they are almost indistinguishable.

If gold falls, silver is going to fall. If equities fall, silver is going to fall. Maybe one day, over the very long term, silver will “express” itself in the manner I have described. For now, however, screw it. I’m sticking with bearish equity positions and nothing else.

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