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Silver And Gold Eye 5-Year Test

ByChris Kimble
Published 08/10/2016, 10:15 AM
Updated 07/09/2023, 06:31 AM

When silver shows relative strength over gold, it often means that the metals complex is doing well.

The chart below pits Silver ETF SLV vs. Gold ETF GLD, which reveals that a big test is taking place in the metals complex.

iShares Silver Vs. SPDR Gold Shares

The Test

In fact, the SLV/GLD ratio is testing dual resistance at (1), as the ratio has remained inside of falling channel (A) for the past 5 years.

If that ratio jumps over the dual resistance, it will send a bullish message to both silver and gold.

Latest comments

I'm also wondering if anyone calling the GLD hotline at (866) 320 4053 in search of numerical details on GLD's insurance? The prospectus vaguely states "The Custodian maintains insurance with regard to its business on such terms and conditions as it considers appropriate which does not cover the full amount of gold held in custody." When I asked about how much of the gold was insured, the representative proceeded to act as if he didn't know and said they were just the "marketing agent" for GLD. What kind of marketing agent would not know such basic information about a product they are marketing? It seems like they are deliberately hiding information from investors.
"Gold ETF GLD". . Speaking of which, why does the GLD prospectus have a line that states GLD has no right to audit subcustodial gold holdings? What reasons could there possibly be for GLD's management to relinquish this right and open up an audit loophole? I don't believe I've heard any valid reasons explaining why this audit loophole exists. This loophole on top of the fact that GLD intentionally makes it impossible for your everyday investor to trade in their GLD shares for any actual gold is very concerning.. . CNBC's Bob Pisani also made a highly publicized visit to GLD's gold vault in a segment called Gold Rush: The Mother Lode. GLD's administration organized this visit to show that GLD's gold actually exists. However, the gold bar held up by Mr. Pisani showed a serial number of ZJ6752 which did not show up on the latest bar list during that time. It was later found that this "GLD" bar actually belonged to ETF Securities.
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