The difference between Gold and Silver

Both the Gold ETF, GLD, and the Silver ETF, SLV, have been on a tear lately.  The moves are being described with words like parabolic, blow off top, contagion, irrational and more.  A lot of the recent chatter has focused on SLV being the one that has gotten the top prize for crazy.  But is that valid? look at the two charts below.

Did you notice the difference without reading the text on the charts?  Both have a very high Relative Strength Index and MACD indicator, but GLD is showing signs of volume divergence on this last move up.  SLV volume has just been increasing with the trend.  So which one is getting tired?  The market will tell us in its own way but I am taking off half of my gains in GLD.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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