Silver Launches

As suspected the other day silver’s grind at the moving averages resolved bullish. The first try came on a surge in volume but then it dropped, whipsawed and came back again to bludgeon resistance on a big volume day. To my eye it looks like silver is headed to a place above the 2019 highs. But if/as silver eventually takes over for gold, it’s probably not going to stop there.

We talked about a gold miner launch in a June 3rd subscriber update (now public) and today it looks like silver is following suit. I am holding a pretty good chunk of the silver bullet, most of which was bought in and around the May lows. I really don’t want to sell it (although you never know), but will use the volatility that is sure to come to add to it over time.

As already noted, I prefer this vehicle to the silver miners, unlike with the gold stocks, which I prefer over gold as a price vehicle. That’s because silver can move well enough to hold its own without the execution risk. Gold is just gold. I hold it for reasons other than casino chips.

silver

As for the ratio between the two precious metals, it’s still gold’s time to shine as silver’s relative downtrend is hard down. But if inflation expectations start to bounce you just watch how this ratio bounces. If the macro shifts inflationary as the central banks and political leaders seem determined to accomplish, I prefer silver over gold, price-wise over the balance of 2019.

silver gold ratio

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