Even though both gold and silver are positioned pretty much the same, I want to use this silver chart because its picture is much clearer. Also, even though both metals are trading backwardated in London, the backwardation is much deeper in silver, so it has greater upside potential when the breakout occurs. Meaning, the gold/silver ratio will fall as silver outperforms gold.
The point here, Eric, is that silver looks very close to a breakout and ready to start climbing higher. The chart above also shows the head-and-shoulders pattern that we have previously spoken about (highlighted in green rectangles). The three
- Source, King World News