Silver DID Join Gold’s Party
Back in mid-July I titled my podcast, “Is Silver Finally Joining Gold’s Party?“. Well, I think we know the answer to that question. Since I recorded that podcast about a month and a half ago, the price of silver is up another 15%. In fact, it’s up better than 30% since the end of May. Silver having a sterling performance today. As I am recording this podcast, it’s about an hour after the close of the U.S. market, we’re up almost 90 cents an ounce. We’re at 19.22.
Gold Still Meeting Resistance at $1,550
Gold, not quite having as strong a day as silver; gold isn’t making a new high. It’s up $19.50 on the day: $1548. Still having some problems with the $1550 resistance area. GLD, the exchange-traded ETF did make a new high for this move, but the spot market did not register a new high – but I think that’s just a matter of days – if not hours – before that happens.
Silver is Leading the Charge
Because silver is leading the charge. It’s leading gold higher; pretty much the way I said. A week ago, I titled my podcast, “Hi Ho Silver, Away” and that prompted a number of people to comment that somehow I had just capped the silver rally by getting too optimistic on silver. Well, that was a week ago. We just hit $18.00, we’re now over $19.00, and I said on that podcast, I thought we would have a pretty quick move up to about $20, and once we take out $20, I think this thing could really, really take off.
Overdue Move Down in the Dollar
What is going to be the catalyst, I think, for a much bigger move up in both gold and silver is going to be the long overdue move down in the dollar. Paradoxically, when the dollar starts its decline, it is even possible that gold and silver take a bit of a breather, or maybe pull back a little bit, in terms of dollars, but pull back even more in terms of other currencies. Remember, as strong as gold has been in dollars, it has been even stronger in other currencies.