Silver Breaking Down but Silver Stocks Holding Up

Silver could be starting the final breakdown we discussed in an editorial about a month ago.  Silver broke lower today, hitting the lowest level since February. It is only 6 cents above its December closing low of $19.11.

Interestingly, the silver stocks as judged by SIL and SILJ are showing more strength. The bottom two rows of this chart plot SIL against Silver and SILJ against Silver. Those ratios have increased over the past two weeks while Silver has trended lower. Furthermore, SIL and SILJ are nowhere close to their December lows.

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