Around my house, we prefer the old black and white TV shows over what the modern world has to offer our children. The Cisco Kid and the old Robin Hood with Richard Greene get a lot of air time … and, of course, the Lone Ranger.
In all great dramas, the good guy has to fall behind before the triumphant finale. In the silver market, these days, we’ve certainly seen silver fall far behind gold. Silver has a lot of catching up to do.
Just under 5 years ago, an ounce of gold would buy you 32 ounces of silver. Today, an ounce of gold buys you nearly 82 ounces of silver.
Unlike gold, silver hasn’t yet triggered a Re-Entry Rule. The Smart Moving Average on silver has just started to turn up. Since putting in a low in mid-December last year, silver is currently up about 11%.
My biggest concern about silver (and gold for that matter) continues to be the fact that the commercial interests are selling into the recent rally like desperados. Every time silver has rallied recently, the commercial interests have sold silver into the rally … and they have been correct in doing so as significant new declines have followed each rally.
But be patient. There’s still plenty of time to let the dust settle and see if it’s the good guys that have arrived or just another ruthless group of desperados.
Richard M. Smith, PhD