*Dow Theory Letters, by Richard Russell, August 27, 2013
”Just for the heck of it, let’s check on the gold/silver ratio. Silver, after months of underperforming gold, has had a nice run lately, taking the ratio from 67 oz. of silver for one oz. of gold, to only 57:1 57 to 1 is an interesting ratio. First, because it’s about the average gold/silver ratio in recent years. Second, because based on this chart’s trendline and previous support/resistance areas, it’s right about where you’d expect silver to start running out of steam. On the other hand, if the ratio hits 56:1, that would hint at further strength in silver compared to gold. All in all – not a crystal-clear picture here; gold or silver? Pick ’em, as they say in betting.”
” RECAP: In terms of risk vs. reward, the precious metals arena looks attractive now, while the general stock market just seems confusing more than anything else.”
*This information is solely an excerpt of a third-party publication and is incomplete. Please subscribe to the referenced publication for the full article. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
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