Another key feature of bull markets in precious metals is that silver outperforms gold. With that in mind, I also like to track the silver-to-gold ratio ($SILVER: $GOLD). When silver outperforms gold, this ratio rises. When silver underperforms gold this ratio falls. Right now, this ratio has fallen to test key support (green line). We should see a bounce here that finally breaks this triangle formation (blue lines) to the upside. This would mean a major move that features silver dramatically outperforming gold as both precious metals skyrocket. Again, if this move is coming, it should be within the next 48 hours. If it doesn’t we’re going to have a deflationary drop that could be quite painful. Best Regards, Graham Summers Editor, Money & Crisis |
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