Gold may sparkle but silver offers better profit opportunities

SilverBars
08-Nov (CNBC) — The rebound rally in gold is well established with a move above $1,290. The upside target is near $1,350.

It’s good to see the gold uptrend continuing but the upside target delivers only 4.65% profit. Rather than trade gold there are more effective and profitable ways to trade this rebound. Gold’s companion, silver, has similar characteristics but offers a higher return for the same behavior.

Silver lags the gold price behavior. Silver has a resistance level near $18.75. This is the equivalent to the $1,290 resistance level on the gold chart. Silver lags gold so the silver price is only just moving above resistance near $18.75.

A breakout at this level has a target near $21.00. This trade offers a 12% return compared with a 4.65% return from gold for the same price behavior move.

Silver has a longer term upside target of $26.00. That’s 36.8% from the current price near $19.00.

Silver is slower to move but it has more room to move and this delivers better profits.

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