Silver showed none of gold’s feistiness last week, but that doesn’t mean it won’t follow gold higher if bullion quotes are about to embark on a sustained rally. Silver’s relative strength would presumably increase as a bull market pushes toward adolescence, shrinking the gold silver ratio from a current 93 to a more silver-friendly level below 50. For now, though, we can infer that September Silver’s reluctance to punch below p2=18.06 reflects consolidation, not distribution. The 16.53 downside target will remain valid in theory nonetheless, until such time as the C=22.65 high of the bear-market pattern is exceeded. However, it’s not yet possible for me to say with high confidence whether it eventually will be achieved.
SIU22 – Sep Silver (Last:18.49)