Silver declined for the third straight week, despite gold soaring to a record high, which incidentally widens the gold:silver ratio to 44.9.
Silver has traded sideways for a while as it recorded slight losses in the last three weeks.
Silver has always been regarded as interlinked with gold, for instance looking at the gold:silver ratio has often been used to determine which direction the precious metals might head next.
The picture a few analysts have drawn so far is that of volatile price movements, with gold and silver occasionally swapping places as the lead precious metal. For example, silver delivered almost twice the gain of gold prior to gold’s exponential run from $1700 to $1800. By that logic, with gold out front now, silver is the better buy and due for an upswing.
Looking at the iShares Silver Trust ETF chart, the action off the major April high may possibly be forming a “cup – and – handle” intermediate bottom pattern, which would imply risks of a challenge to the April – August resistance line and if successful may propel silver prices much higher in the coming weeks.
Holdings of the iShare Silver Trust declined by 86.36 tonnes on the week, but are still 235.41 tonnes higher since July 1st when prices began rallying. The iShares Silver Trust currently holds 314.2 million ounces of silver valued at $12 billion.
