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Silver, Gold And Broken Records

Published 04/20/2017, 10:05 AM
Updated 07/09/2023, 06:31 AM
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We may sound like a broken record with our calls favoring silver over gold during the last 6-9 months based on our bearish take on the gold:silver ratio. But we can't ignore the number of speculative longs in silver on the Comex, — net 105,515 contracts compared to gold's 172,666 net long contracts. But that's still 50% below the record reached last summer.

Net Long Positions (left), Gold:Silver Ratio

Silver bears may be pointing to the failure to break above the 50% retracement of last year's high-low move, but the bulls remain fixated on silver's higher lows and the potential golden cross on the daily and weekly charts. The higher lows on the gold:silver ratio are the less obvious but more powerful signal.

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