Silver And Gold
Silver and gold were up today and I am now showing a small profit on my long SLV position.
The last week or so I've been saying that silver should become stronger than gold and if you look at the above chart you will see how much stronger silver is compared to gold.
Last week the metals had a sharp sell off with gold taking out last month's lows but if you look at silver's chart you will see a higher low. This to me is a clear sign that silver is becoming stronger than gold. Hopefully these metals will continue to rally in the weeks to come.
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![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_4.gif)
![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_4.gif)
![[Most Recent Exchange Rate from www.kitco.com]](http://www.weblinks247.com/exrate/24hr-euro-small.gif)
6 comments:
Kevin, doesn't a strong dollar have an inverse relationship to metals? Are you thinking the dollar will remain weak?
Yes there is a direct relationship between the dollar and commodities.
The trend in the dollar has been down all year...I guess you can say I'm looking for that trend to continue..but my main focus is on silver....It's quite possible that the dollar moves sideways and silver rallies.
Kevin,
Based on your experience, besides dollar having direct relationship with metal (commodities in general). Is there any relationship of Gold/Silver with any thing that you have observed ?
Sometimes foreign currencies can influence gold and silver.. The yen carry tade can affect money flows into gold and silver...A rising CRB which is a sign of inflation might influence money moving into or out of gold..
Following up on this, Bloomberg is saying that gold/silver may decline because people think interest rates are going to go up. Do you think this makes holding a long position in SLV not a good idea for the next few weeks?
Hi Dm,
Anything is possible..but I'm going to stick to the charts and stay long. If I am wrong about silver I will take a small loss, but if I am right I will do well.
I think the risk is worth the potential reward especially if people are skeptical about buying silver.
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