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Saturday, April 10, 2010
The Silver to Gold Ratio Shows that Silver has much resistance to Overcome
Looking at the most recent weekly chart of the number of ounces of silver that it takes to buy an ounce of gold, we can see that silver in terms of gold has much resistance it must overcome in the area of .017 on the chart. Since I believe the silver is quite undervalued in terms of gold, I would expect that silver should outperform gold and therefor break through the strong resistance at .017 on the chart. Will it break through soon. Will it be turned back once again only to have to try it again later? The only thing this chart really tells me is that silver faces a tough test ahead in terms of gold.