The last month has been filled with some pretty amazing market activity. So much so, that the wild movement in the market did not allow investors to really digest or understand what was happening. Now, a month later, investors have had a moment to realize a few key points regarding silver. What did we learn during the sell off?

Gold and Silver Have a Very Close Relationship

While these two precious metals have never really been tied to one another in any “official” capacity, they are indeed tied to each other by certain market actors. As most of us know, silver dropped by 33% while gold was virtually unchanged, having lost only 7% from top to bottom. The gold to silver ratio now stands at a reasonable 40:1.

Financialized Silver is Still Very Important

Among the several key elements that lead up to the silver correction was the build-up in investment interests in financialized silver. In other words, silver that is bought and sold in intangible form. Local coin shop prices are still set by Comex and by the major institutional investors who bully prices for most financial products.

Silver Miners Do Matter

For the most part, Wall Street is still a crazy game of “who is smarter than whom.” Wall Street is currently looking for cash flow, instead of protection for wealth. This is due to the fact that our economy is still basically in the toilet. In the silver correction, traders were swapping bullion (supposed future delivery of bullion) for shares in silver miners, which produce cash, not silver. Miners equal future cash flow for Wall Street for silver production, not silver.

These three things tell us – if looked at closely, that silver is still a very strong investment. Investors just need to be patient and ride out the market’s irrationality if they are able to. The long-term — after all markets find efficiency and normalcy, means significantly higher values for Silver Bars.