Gold V/s Silver

May 5, 2021

Brijesh Bhatia, Research analyst

We have been bullish on gold and silver as investments for a long time now.

But what about trading?

Which asset would be the better choice from a short-term trader's point of view?

Well, in this video I have the answer for you.

I've analysed both assets separately and together, in three charts, and came to a definite answer.

Watch the video and let me know if you agree.

Gold or Silver? Where should you park your money for short term trading for the next two to four weeks?

Myself Brijesh Bhatia. Welcome to the Fast Profits Daily video series. It this video, we will be discussing from a short term point of view whether you should take a bet on gold or silver.

 

So let's look at the first chart over here, the gold to silver ratio chart. This is a well-known chart followed by many of the commodity analysts and traders.

What does this identify? When the gold price tends to outperform against silver, this price chart will go up. When silver is outperforming against gold, this price chart will go down.

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So if you look at the current scenario right from August 2020 to February 2021, it traded in a triangle formation and we have witnessed break down in February 2021.

It retested those breakdown levels in April and again, the fresh momentum is building on the downside, which means that here, silver is outperforming against gold.

 

Now, if you look at the gold chart over here again, note that this is not an investment video, this is from a short term point of view where you should look for a trading bet.

Now if you look at gold, yes structurally, it's very much bullish and we are very much bullish on gold. We have already done a video on gold for a target of US$ 2,500. So if they haven't watched it, do watch that if you are an investor.

From a short term point of view, we think that gold has given a breakout of a double bottom formation, a trend line break out.

Now it's trading in a rectangle formation where it has retested the upper and of the rectangle structure and slightly showing some fatigue signs.

Again, I'm repeating, this is from a short term point of view but as an investment, yes we remain very much bullish on gold.

 

Now the third chart, if I look at the silver over here, it has given a fresh momentum break out of bullish head and shoulder, on the similar lines of the trendline breakout witnessed on gold is witnessed on silver as well.

But if you look at the current scenario, silver is breaking out a fresh momentum, out of a bullish head and shoulder.

So we believe that the rally in the silver would be the fast and furious in next 2 to 4 weeks and it could outperform against the gold, which has been indicated by gold to silver ratio chart.

So from a current, or from a short term point of view, you should definitely for silver, which has given a break out of around US$ 26.75 in Comex.

We are expecting on 28-28.5 from a trading point of view in the short term. Probably you might look at 2, 4, 5 weeks' time. Silver might test the US$ 28-28.5 mark.

So over all, as an investment, yes, gold is very much bullish but from a trading point of view you should focus on silver at the current point of time. It seems to be an attractive buying opportunity from a trader's point of view.

Signing off. Brijesh Bhatia.

Thank you.

Warm regards,

Brijesh Bhatia
Brijesh Bhatia
Research Analyst, Fast Profit Report
Equitymaster Agora Research Private Limited (Research Analyst)

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2 Responses to "Gold V/s Silver"

Anandswarup Purwar

May 5, 2021

Good explanation as to why silver may outshine Gold in near future.
Thanks!

Like 

Premkumar R

May 5, 2021

Useful.Welcome more such videos.

Like 
  
Equitymaster requests your view! Post a comment on "Gold V/s Silver". Click here!