Silver vs Gold: Positive Divergence
Let's look at the chart of gold vs silver over the last few weeks. Gold's recent low was in mid-Aug and silver's - mid-Sep.
Although, both gold and silver have given precious metals investors lots of pain since April, there is an interesting positive divergence. While gold has only gained about 3% since its recent low, silver has gained about 5% and is visibly trending upwards, compared to golds horizontal movement.
This might mean that since silver has much more industrial application than gold, we might not see silver below $14. If precious metals do recover from deeply oversold conditions over the next few months, a move in silver is likely to generate comparatively larger gains.
What do you guys think, where will gold and silver prices be in a couple of months? Share your opinion in the comments, and I would be glad to upvote them.
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