Silver Shines as Goldman Sachs Dims – Ep. 160

  • Hi-Ho Silver! Seems to be the rallying cry for the day
  • The last podcast I recorded I talked about the breakout in silver and I actually regretted the fact that I didn’t get a chance to talk about silver during my CNBC interview
  • On my last podcast I mentioned how strong silver had been looking and it held up extremely well in the gold selloff during the prior few days
  • Sure enough, we had a big breakout again today
  • Silver was above $17 earlier today, the first time it has been that high all year
  • Gold is still well below the highs, it needs to rally about $30 to get back to its high for this move
  • I mentioned on the last podcast that I though the strength in silver was a good leading indicator for both gold and silver
  • And I talked about all the traders who have been shorting silver, that had been a popular trade when the gold and silver ratio was breaking down, I thought that it made no sense to short silver
  • To me it was a much better trade to buy silver when it’s as cheap as it’s ever been relative to gold
  • This is good constructive action, in fact, the gold stocks are at new highs for the year
  • The GDX, as I speak, is up 4% on the day; it’s above $23 – this is the high for the year
  • The juniors, GDXJ, that index is up over 6% –  today! This is a new 52-week high