Silver to Hog Limelight in Winter


". . .trader interest once again is moving from gold equities to silver equities."

Silver is considered as gold's poorer cousin and usually lags the performance of gold in times when speculators are focusing on gold as a monetary commodity. The silver/gold ratio has been in an intermediate uptrend since last October.

However, the focus of gold as a monetary commodity briefly reversed this trend in September and October. The ratio bottomed at the beginning of November and is showing early technical signs of resuming its upward intermediate trend.

Technical action this week in individual silver stocks confirms that trader interest once again is moving from gold equities to silver equities.

Technical action by silver remains positive. The intermediate trend remains up. Short-term momentum indicators are overbought, but continue to trend higher.

According to a report in Financial Post, a variety of silver-based exchange-traded funds and equities are available for the seasonal trade. Possible exchange-traded funds that track silver bullion prices include iShares Silver Trust and Horizon Beta Pro Comex Silver ETF. In addition, the Claymore Silver Bullion Trust is trading at a 12.8% discount to net asset value.

A wide variety of silver mining companies track the price of silver. The preferred strategy is to own shares in senior, producing silver miners and to avoid more speculative offerings.

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