Silver Testing Recent Highs

Since bottoming in late January silver has rocketed higher and is getting close to hitting its previous high.  Silver is also outperforming gold once again, which is typical during the later stages of a rally in precious metals.

Gold stocks have outperformed gold since their recent bottom. Typically sustainable rallies in gold occur when gold stocks outperform gold since they leverage the price of gold.

Junior gold stocks have also started outperforming senior gold stocks. This is another sign money flow may be returning to the sector. An inverse head and shoulders pattern has also been forming on the chart, which measures to 43 on GDXJ if the pattern is completed.  That would be a clear breakout to new highs for junior gold stocks.

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