- GoldSilver (w/ Mike Maloney)
Gold and silver prices continue to push higher. They’re starting to get some attention from the mainstream, too. A new uptrend in gold is clearly underway, but silver’s performance has so far trailed gold’s. Let’s take a look at the price behavior over the past six-plus years of both metals to see if we can gain any insights about silver. I plotted the annual trading range of the gold price since 2013, when most traders indicate the bear market in precious metals began. I also listed the dollar amount of change between the high and low each year.
Notice how the range has shifted higher this year. Gold’s trading range has shifted markedly higher in 2019. Not only has the price broken above the flat range of the prior three years, you’ll also notice a series of higher lows, a very bullish indicator. This insight is perhaps more valuable than a simple line on a chart, because it shows that gold’s full price range — both the highs and lows — is trading higher. The current surge will undoubtedly take a breather at some point, but this big-picture view clearly shows a decisive shift in momentum, one that portends higher and higher prices. This shift, however, has not yet taken place with silver.