Gold, monthly, fib levels
Silver, monthly, fib levels
Summary
It is indeed highly notable that silver remains very weak relative to gold.
Reasons?
Well, Gold is clearly benefiting more from a 'fear bid'.. and lately of course we have had somewhat significant issues with Russia/Ukraine.
Second, there are clear deflationary issues - especially in the EU, and silver - being a more industrial metal, is suffering as a result.
Third, there is always the traditional silver/gold price movement ratio of 2-1. Although this past month of course, Gold actually managed an August gain, vs a -4.5% decline for Silver.
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*I remain resigned to my grander outlook that Gold will eventually test the giant $1000 threshold next year. That would probably equate to Silver in the low teens.. maybe even the psy' level of $10 an oz.
Without question, that would make for one hell of a buying level in 2015.
