Another Good Month

It was another good month for both gold and silver, which respectively rose 3.4% and 4.5% from the month before. Even more impressive are their year-on-year gains, which are 45.5% for gold and a blistering 61.1% for silver. During the past year, gold has risen in eight months; silver has climbed in nine.

The following monthly charts are both very bullish.

Though these charts present a bullish picture for both metals, there is an important difference between them. The bull market in gold is much further developed than that in silver. Gold has broken out of its consolidation pattern (the green parallel lines forming a 'flag' formation) and is much closer to its all time high. Silver though is still within the huge base marked by the two green lines.

The implication of this observation about the relative position of the metals is that silver has some catching up to do. In other words, silver can be expected to outperform gold from here.

Published by GoldMoney
Copyright © 2006. All rights reserved.
Edited by James Turk, alert@goldmoney.com

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