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This is an even price weighted index of 6 major North American listed Silver companies. The bottom section of the chart is the index itself coupled with a 150 day moving average in Red. The middle section is a Relative Strength Comparative between the Index and the Silver price in US dollars. We use this indicator to assist us in determining whether the Major Silver companies represent good value in relation to the Silver price. Like the XAU, it is used as a barometer to gauge the entire Silver sector with the Accumulate region (Green vertical lines) representing better value and the Profit Taking region (Red veritcal lines) suggesting Silver shares may be getting a little expensive relative to the metal price. The top section of this chart is a standard 14 day Relative Strength Index where anything under 30 represents oversold levels. Unlike the Gold and Silver charts this indicator proves less reliable as a buying indicator but will still confirm periods where the sting has gone out of the Silver market.
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