Courtesy of Chris Kimble.
Since the highs back in 2011, Gold and Silver have NOT been a good asset to own, when it comes to the buy and hold strategy. Could this theme be about to change?
Below looks at the Silver (SLV)/Gold (GLD) ratio over the past 10-years.
CLICK ON CHART TO ENLARGE
The SLV/GLD ratio remains inside of clean falling channel (1), where the ratio has created a series of lower highs and lower lows for years. Currently the ratio looks to be forming a descending triangle, just below falling resistance at (2).
If the ratio breaks out, of falling channel (1) and above last year highs, it would send a positive risk on message not seen in years. Premium and Metals members are long GDXJ since just after Christmas. If a breakout takes place at (2), several metals plays should look attractive!
To become a member of Kimble Charting Solutions, click here.
