The Silver ETF and Is Gold /Silver Ratio Important?

Some great commentary by PreciousMetalInvestment.com regarding the bull run in silver and gold and what does gold have to do with it.  Should you take a chance on silver, there's always iShares Silver Trust (ETF) (NYSE:SLV).

First up the Silver Trust (SLV) which has ran up 25% in the last month and closed today up 3% at $13.99 for more information on the SLV, check out iShares.com - Here's the link.

One of the effects of a financial crisis in the past has often been a narrowing of the gold/silver price ratio.

In what is promising to be a recession equal or worse than the thirties, that ratio is now running true to form.

As the crisis deepens can we reasonably expect the ratio to continue to narrow, meaning that if gold continues its bull run, as is now the consensus opinion of analysts, then will silver climb faster percentage wise than its yellow metal cousin?

Dealing with other factors that contribute to future projections of silver's price performance throws up some contradictory signals that should be taken under consideration before entering this volatile market.

The technical analysts will point to the fact that two key indicators, Stochastics and RSI, are telling them that the metal is overbought.

The same has been said of gold but it has not so far stopped it bounding ahead in the last few weeks, or at least not yet.

As usual, the charts paint a conflicting picture but overall, despite being overbought, many technicians see indications that silver is in a bull trend following the path of gold.

The fact that silver is used in many industrial applications could be a potential damper on the price as demand is expected to fall away as the crisis deepens.

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SOURCE: http://www.preciousmetalinvestment.com/silver/gold-silver-ratio-important/