The latest silver charts from analyst Sean Brodrick.

Regards - VHF

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Gold and Silver Chart Fiesta

Sean Brodrick

September 26, 2010

...Speaking of outperformance, here’s a chart of silver showing its breakout. On the bottom, I’ve put the silver/gold ratio. That’s turning up, confirming that silver is outperforming gold.

So how high will silver go? As I said in Friday’s column, 31.39 is my working target. My target made some other analysts chuckle. “Could you be more precise?” one of the Coffin brothers ribbed me (I think it was David Coffin, apologies to him and Eric if I got it wrong).

But heck, you know that number is written in crayon. It’s just what the charts tell me. And I think silver is going to zig-zag higher from there — to $50.

One of the gold bulls strongly disagreed with me about that last night. Hey, we could both be wrong, the dollar could rally for the next year and both gold and silver could be in the dumper. But I don’t think so. The big trends — and history — are on our side.