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TFC Commodity Trading Forum

Re: Gold versus Silver *PIC*
In Response To: Gold: Interim top in? *PIC* ()

Even if this is some kind of top for Gold, short-term or otherwise, leaving bullion alone and shorting the weak sister appears to be the smarter play here. That is what the Gold/Silver ratio is suggesting in any event. If Gold does correct sharply, it is a high probability that Silver will outpace it to the downside given its higher beta. The interesting issue timing-wise, is that many will be looking to buy the precious metals on any correction or pullback this month due to the expectation of the seasonal rally that occurs *almost* every year coming into September. The concern there is what happens when a market doesn't follow the seasonal playbook, such as in 2008, and throttles in the opposite direction...moves that catch so many off-side in that manner tend to be some of the largest...interesting days/weeks ahead...as always, lol!