From the Desk of Ian Culley @IanCulley
Pop the champagne!
Gold reached new all-time highs.
Now, whether we consider the shiny yellow rock a viable investment is another story.
You know I’m bullish…
Yet I can’t overlook silver’s lack of participation.
I think of silver as gold’s rambunctious cousin — lots of fun until someone gets hurt — and someone always gets hurt!
Perhaps trading silver isn’t your cup of tea. I don’t blame you.
But silver rallies possess an infectious exuberance. Its rowdy antics and monstrous daily ranges magnetize investors as they attempt to skirt silver’s flame without burning to a crisp.
Unfortunately, silver isn’t bringing the heat. It has yet to break out, and the silver-to-gold ratio is trending lower.
A similar scenario unfolded last spring when gold ran up against its former all-time highs:
The result: 10 more months of sideways chop.
Despite a likely pullback, gold futures and the Gold Shares ETF $GLD remain buys if they trade above last month’s breakout levels (2,100 and 193, respectively).
But gold will take the scenic route until silver breathes a little life into the precious metals space.
Don’t worry, it’ll be impossible to miss.
Silver’s breakout will outshine gold’s new all-time highs as sabers swing, popping bottles left and right.
We’re talking about a real party. Someone will lose their shirt… or even an eye.
But investors won’t be able to resist the good times.
-Ian
Click here to watch this week’s Gold Rush Video:
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Allstarcharts Team
