by Craig Hemke
Sprott Money
What in the world do these two things have in common? Not much other than the fact that they share the same chart. What’s that about?
As we all await the latest FOMC mutterings on Wednesday, I thought it might be fun to write this week about something you may not have noticed. And what’s that? The curious yet almost 100% long-term correlation between the price of COMEX silver and the price of the popular gold mining share ETF with the symbol GDX.
Now on the surface, you wouldn’t expect these two to be so closely correlated. And why would you? Why would the price of COMEX silver be in any way connected to the prices of shares in major, producing gold mining companies? The GDX is managed by a company called Van Eck, and from their website, you can find this list of its current holdings: