No doubt that Silver is underperforming Gold here and that it is in danger of taking out its Dec 2015 Low. So what is up with Silver? The Gold:Silver Ratio is instructive here as it clearly shows what is taking place (the ratio moves higher when Gold outperforms Silver and drops when Silver outperforms Gold). The two daily charts below (4 month and 2 Year) show the Ratio is clearly breaking out.
The Ratio is now closing in on 80 so what is the ratio potentially signaling? The ratio can also be used as a pseudo credit spread to gauge what is going on in the Credit Markets. When Credit Markets are nervous, Gold often reverts to its role as monetary metal in a flight to safety. Silver, however, moves more towards a pure commodity. If this is true, one would expect that there would be a correlation between spikes in the Ratio and major lows in the Stock market. Take a look at my next two 11 year Weekly charts of the Ratio and the SPX. The vertical Green lines show this historical correlation.
I find it interesting that this lines up with what Plunger thinks may be unfolding this Fall.