If every month were like October, our problems would be over

New York (Nov 16)  There's one thing that I've noticed over the years: whenever bull markets (or bull legs up after correction lows) begin, prices go down dramatically, but the upward trend crawls so slowly as not to be noticeable. That is, until you compare those prices over a longer term.

We're now just one month from the miner lows of September 29. The last day of October saw a big dramatic downdraft in prices, of the sort I've just written of.

However, if you compare prices at the end of October to those at the end of September, a dramatic change is seen to the upside.

Before we list the specifics, remember last issue when I put down my thoughts of which aspects of the precious metals' universe could be expected to do the best? I thought that in the coming leg up, silver would do better than gold, and that the junior miner GDXJ would do better than the senior miner GDX.

So far, anyway, this has been borne out by the markets. While gold only rose 1.5% over October, silver jumped by 10.7%. The silver/gold ratio fell from 80:1 a month ago to a current 74.7:1.

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