Silver's recent rallying action is starting to catch traders' attention. Since the end of its latest correction in early February, this white metal has surged 23% higher. It has well outperformed gold, which only climbed 9% over this same 9-week span. And based on silver's strong historical relationship with gold, odds are today's silver rally is only beginning. Silver's gains should accelerate in the months ahead.
The primary reason is silver remains seriously undervaluedrelative to gold. While it sounds strange to apply valuation concepts across metals, in the case of silver and gold it is very appropriate. The gold action utterly dominates silver traders' sentiment and hence silver price action. When gold rallies, they get excited and aggressively buy silver. And when gold sells off, they get scared and swiftly dump silver. Read More