SLV is trading above its 50 day moving average of $31.25 and the S&P 500 is trading above its 50 day moving average of 1319.31. As both related moving averages have turned upward, it seems somewhat reasonable that AUMN would be trading at least at or above its 50 day moving average price ratio of AUMN’s share price divided by silver. The current 50 day moving average of the AUMN:SLV ratio is .264. Hence, at SLV $33.00, using the 50 day moving average, it could be argued that an AUMN price of $8.71 would be reasonable.

Seems like a buying opportunity to me. Sadly, this sector has seen far too many buying opportunities. I long for the days where we have broad selling opportunities like we used to get.