Wednesday, August 31, 2011

Is Silver To Gold Ratio About To Resume Uptrend?

Is it finally time for silver to start outperforming gold again?  I'm not a technician, but it looks like this formation needs to break one way or the other soon. 

The PPO on the top of the chart is moving up while the silver price has had a downward tendency, this non confirmation makes me thing the the price of silver in terms of gold may be ready to head higher soon.  (Of course this formation may break down and gold will outperform in that scenario).

It just looks to me like the chart is coiling like a spring ready to be set loose and very soon.  All silver investors will be very interested in which way this ratio heads as it will impact the price at which silver trades.

Got Silver? Got Gold?