Gold News: Is Silver the New Gold?

This is definitely a gold-watching blog, and will continue to focus on gold news. However, every once in a while some distraction rolls by the window, and we’re compelled to notice.  Last year that meant primarily Bitcoin. This time it’s gold’s little brother silver.

Silver is much less expensive than gold per ounce and fluctuates a lot more on a percentage basis.  So folks looking to get rich quick tend to go for silver before they go for the gold. The one metric that this Gold Enthusiast casts a periodic glance at is the gold-silver ratio, which shows how much the relative price of the two metals change.  With gold’s recent dip and silver’s slight rise this past week some analysts are getting excited about silver again.  

But to this Gold Enthusiast’s eye, the recent action is just normal market noise. People aren’t 100% consistent or logical in all their actions, so things will vary against each other as time goes along.  Comparing GLD to SLV on a 1, 3, 6 and 12 month chart – in that order – should show pretty quick that the relationship moves up and down a bit over time. And that today’s difference just doesn’t look very significant either in size or direction.  That may change over time; changes over time is what keeps things interesting after all. 

 Today’s featured article looks at a few technical indicators for silver and gold, and just may convince you to keep an eye on silver in the short- and medium-term.

 Related: Is the Dollar Rally Over? Here’s What This Means for Gold. 

About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated with a business degree, then worked with Macy's. After Macy's he spent a summer trading his own account, which taught him a lot about trading in general and markets in particular. Trading through the Black Monday and the Crash of 1987 showed him how most people are unprepared for upheavals in their trading. He then joined a well-known financial planning firm as a financial advisor, helping regular people understand their finances and meet their life goals.

Then came the usual story - Mike met and married the lady of his dreams. They moved to upstate New York, where he worked first for a small manufacturing consulting company, then a major university. While loving the work and the higher-education atmosphere, Mike missed the world of finance. Eventually, he signed up for stock trading coaching with the Adam Mesh Trading Group, to learn from people who understood modern markets. Within a year, Adam asked Mike to become a stock trading coach.

Since then, Mike has trained over 200 individuals, spoken at several national conventions, and is a frequent contributor to conference calls across the Adam Mesh community. Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keep him in touch with "the student mindset". Mike closely follows the gold, energy, and financial sectors. His motto is "Plan your trade, then trade your plan!"

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