Thursday, August 21, 2014

Silver and Gold - At Inflection Point Again (How Many Times Yet?)

Gold is hated in the West. No matter what happens it stays unchanged or goes down.
The game is simple: BUY U.S. stocks SELL gold.
But sometimes the game is at interesting points. Presently we have such a point. Please, look at the chart below:

Most recently silver has started to weaken against gold. This is good for gold bears and bad for gold bulls. When we have a bull market in precious metals sector then silver is better investment than gold. Since August 2013 silver has stopped to go down against gold which has been a rather good sign for gold bulls.
 But today we have a test period again - if silver goes down below the green line on the centred chart the bear market in PM sector could start again.

And just one look at the dominating pattern in gold (it repeats nearly every day):

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