Gold and silver losing relative strength against the shares

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ElPrimero

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Gold and silver losing relative strength against the shares

posted on Sep 14, 2012 12:29PM

Gold/XAU ratio 9.27 down 0.21

The ratio has smashed under its 200 day moving average line at 9.61. This clearly indicates that a serious trend change in favor of the pm shares versus the precious metals is in progress. Although it appears this weakness in the Gold/XAU ratio could be a little advanced, time will tell if it generally holds below the average and, indeed, increased values return to the sector companies.

In regards to Probe, the expected rising tide for the shares will eventually float all boats. PRB is just heavier because of all the extra baggage this want-to-be gold company is packing. It would be so much easier to be recognized as a gold stock if somewhere in the company title it reflected Borden Lake. How about Borden Lake Gold and keep the rest of the assets in Probe Mines? This works for me.