There seems to be some frustration/anxiety regarding silver’s seemingly poor performance in relation to gold these last few weeks,.. This has also been jumped on by the bear camp of Nadler et al as an argument for a top in the PM sector as gold’s breakout is not being confirmed by silver’s performance,.. Ironic when one considers that in the 2 previous spikes in gold over this bull run, the top was confirmed in both cases by a runaway silver price in the latter stages,.. If it’s history they wish to go by then the fact that silver is still languishing, should give the bulls tremendous courage,..

Personally the pattern and performance of gold and silver is still playing out as I have speculated for some time, with still the expectation of a strong run up in gold and silver in the making into April/May of next year,..

About a month ago I did some chart analysis on silver and gold, excerpts and the charts from which I include below,..

“Below highlights my chart analysis of the consolidation patterns in gold,.. As one can clearly see, each step of consolidation has lasted about 18 months (from Apr-Oct) followed by another steep run up in prices,.. Given it’s been about 18 months since the last spike, another aggressive run up is due into circa April next year,..

Silver: Showing a clear correlation of 18 months consolidation followed by a sharp run up into the mid first half of the post ceding year,..

The above chart analysis was put together about a month ago, yet nothing has fundamentally changed from conclusions/analysis reached at that time,.. The expectation is still for gold to rise to circa $1,500 and silver to circa $28 by April/May next year,..

To back this up and show that all the ducks are still falling into line I have put together a chart showing the gold/silver ratio,..

Note that in fact the present relationship of gold to silver is very much in line with expectations of both achieving highs of $1,500 and $28 by April/May 10,.. The ratio is trading within a clear linear band which on it’s present course would give a ratio of circa 50 by that stage, aka $1,500 (gold) and $28 (silver),..

I trust that relieves a little nervous tension from any frustrated silver bulls,.. In fact perhaps a little early to call with definity, but the RSI of the ratio appears to be warming it up for another sizeable downside move in the not too distant future,..
Kind regards,..
Rich (Live from ‘The Scarborough Bullion Desk’)