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.