Bifurcation in the Precious Metals Complex and the Implications

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"Although I am cautious in the short-term, note the very bullish cup pattern that dates back to 1980. Yet, the cup often includes a consolidation (the handle). Silver is overbought and will need time to digest the recent gains. Moreover, the inability of gold and gold shares to break out lends questions to the sustainability of recent gains in the silver complex. The last time we had this bifurcation was in early 2004. Gold and silver would consolidate for more than a year before breaking to new highs in late 2005. Am I saying that will happen again? Not necessarily.
This is a raging bull market that has many years to go. Yet, the veterans know that shakeouts can be brutal." 

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