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Is Gold And Silver The New Buy-And-Hold Play?

Published 02/01/2017, 11:31 AM
Updated 07/09/2023, 06:31 AM

Since the highs back in 2011, gold and silver have NOT been good assets to own, at least from a buy-and-hold perspective. Is that about to change?

Below looks at the silver (SLV) -- gold (GLD) ratio over the past 10 years.

Silver Vs. Gold

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's highs, it would send a positive risk-on message not seen in years. Premium and Metals members have been long GDXJ since just after Christmas. If a breakout takes place at (2), several metals plays should look attractive.

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