- Hi-Ho Silver! Seems to be the rallying cry for the day
- The last podcast I recorded I talked about the breakout in silver and I actually regretted the fact that I didn’t get a chance to talk about silver during my CNBC interview
- On my last podcast I mentioned how strong silver had been looking and it held up extremely well in the gold selloff during the prior few days
- Sure enough, we had a big breakout again today
- Silver was above $17 earlier today, the first time it has been that high all year
- Gold is still well below the highs, it needs to rally about $30 to get back to its high for this move
- I mentioned on the last podcast that I though the strength in silver was a good leading indicator for both gold and silver
- And I talked about all the traders who have been shorting silver, that had been a popular trade when the gold and silver ratio was breaking down, I thought that it made no sense to short silver
- To me it was a much better trade to buy silver when it’s as cheap as it’s ever been relative to gold
- This is good constructive action, in fact, the gold stocks are at new highs for the year
- The GDX, as I speak, is up 4% on the day; it’s above $23 – this is the high for the year
- The juniors, GDXJ, that index is up over 6% – today! This is a new 52-week high
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