Sunday, July 17, 2011
In early trading on Sunday evening, the price is just under $40 an ounce. Silver is trading along the upper bollinger band for the last 3 trading sessions, 4 including today. A minor pullback sometime next week will most likely be short.
With Gold near the $1600 level and ascending, Silver should tag along and the Gold/Silver ratio should continue trading in the 40 range. With Silver still under the 1980 all time high of near $50 an ounce, it is still undervalued. The Silver/Gold ratio is going under 20, so if one were to accumulate a precious metal, Silver has more upside than Gold. The ratio may be somewhere in the low 30's at year end.
The miners are also starting to rise with the metals which is good news. One is able to get the opportunity to purchase Gold at $600 an ounce when the metal is trading near $1600.
Labels: Silver Gold ratio bullish