Silver Better Than Gold?

Another one of my readers wanted to know which gold stocks I like at the moment. I was going to save this post for later in the week but being that my reader took the time out to ask me what I like, I figured I'd take the time out and post about it now.

The bottom chart is a chart of the XAU (gold/silver index). Above that we have two silver stocks, SSRI and PAAS. Notice that the XAU index has made new lows for the year while SSRI and PAAS have not. These two silver stocks are showing relative strength.

Last week silver also showed some strength by breaking out above the prior week's high while gold hasn't done so yet. So it appears to me that silver and the two silver stocks I just mentioned are showing some strength not only to the market as a whole but to gold itself.

There are a few other metal stocks that are showing some relative strength such as AEM, AU, FCX and even a few steel stocks. I haven't bought anything yet but SSRI and PAAS are at the top of my list as potential longs. I like both gold and silver, but silver is the one that is showing a bit more strength as of now. Keep an eye on it!