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London
December 5, 2024
PI Global Investments
Silver

Silver sizzling, but is it overdone?


(Kitco Commentary) – Last I wrote, I suggested that silver was just about ready to pop; since then, silver has gone on to outperform gold in a drastic fashion.

Below is a weekly chart of the gold/silver ratio. Note the top last week at around the 90 resistance level, immediately proceeded by this week’s big red candle.

My expectation is that the ratio drops farther, for a test of the rising trendline. Note momentum turning down on the stochastic indicator with lower, horizontal support, represented by the yellow rectangle.

I continue to give metals bulls benefit of the doubt. I anticipate ( that a test of the 76 level would correspond to the $30 silver level, which implies a gold price of $120 higher than where spot currently sits.

Thanks and good luck,

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.



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