Silver outperforming gold May 12, 2009
Posted by Warren in Metals, Strategy.trackback
The silver:gold ratio depicts the level of inflation expectation and risk appetite in the markets; it has been on the rise as of late. While gold re-tested 1000 back in March, silver rose to a meager 14.6. The rally back in March was driven by fear, whereas the current rally is driven by risk-taking. The long-term chart of silver is signaling a new up leg to the previous high of 21. Of course, timing is always important. If silver doesn’t break out at this time (and suffers a correction), it may take weeks or even months to regain momentum sufficient enough to break the multi-year resistance level.
Silver:Gold ratio: 3-year
Silver: 3-year
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