Ed Steer: For the week:
– Gold was down 3.4
– The HUI lost 8.6%.
This is normal
– Silver was down 5.5%
– Silver stock index closed lower by only 2.9%.
This is not normal. Typically the index should be down over 10% (if not 5,000%!). The typical explanation is that strong hands are buying silver shares and silver and the silver shares should go up soon. When the top is near, silver should keep going up, and silver shares should under preform.
Graphically, the SLW : silver ratio is rising, suggesting more upside in general. If true, for the next few days, SLW is a buy on a stop of about 25.5, with stop loss a bit under 24.5.