Goldsilverratio
The Gold to Silver Ratio is Fragile HereThe gold to silver ratio appears to be nearing a breakdown lower. If this were to happen this would be incredibly bullish for both gold and silver. The gains in silver over the coming months would be incredible provided the level of 110 is broken and stays there. I would expect a bounce above 100 once it breaks lower, but then I would expect to see a complete breakdown in the ratio with the gold and silver rally in full swing.
Gold/Silver Ratio 90 Year CycleThe last time the gold/silver ratio was breaking out in this manner was in 1929, and following the breakout, the ratio moved higher and higher and higher for YEARS.
Be wary of the gold and silver perma-bulls.
Gold is a necessary part of every portfolio as both a deflation and inflation hedge, but silver isn't. Silver is treated as an industrial commodity by the market.
The most undervalued asset in all of human historySilver is the most undervalued asset in human history. Never before has the gold silver ratio been this high.
JP Morgan Americas largest bank has a huge short position on silver, suppressing the price of paper ounces. They do this while they have accumulated the largest horde of physical silver in modern history.
Silver is a critical industrial metal as well as a monetary metal with the same importance as gold.
The paper ounce to physical ounce of silver ratio is 1:172
The dollar to silver ratio in 1913 was $2.66
Today that same ratio is $2522 dollars per ounce of silver.
Along with the impending collapse of the dominance of the USD, the end of globalism and a return to mercantilism. The world is going to return to hard money (gold,silver) and very like bitcoin and other cryptocurrencies will have a significant role in this new world order.
www.usdebtclock.org
Get some physical gold and silver, own some bitcoin and prepare for the coming years.
The Gold Silver Ratio has a big decision ahead.The Gold Silver Ratio is either about to create a second bottom in Silver or will allow Silver to finally join the Gold rally in a bullish move for the precious metals. This technical pattern does not indicate one way or the other what is the most likely outcome, however in a deflationary environment I would expect silver to head lower and therfore the Gold Silver Ratio to head higher one last time.
SILVER RELATIVE TO GOLD/SILVER RATIO silver price is at historical lows against gold.
if equity & commodity markets begin the recovery phase then silver price can rebalanced in mid term trades.
Silver and the GDX during times of high volatility and G/S RatioTo be taken with a pinch of salt. The theory is relatively simple. When the VIX and Gold Silver ratios get so far out of the normal range, they tend to reverse but slowly over time. This usually leads to a bull run in the GDX and Silver prices if played out similiar to 2008. I would anticipate the Gold and Silver miners and Silver to be a buy in the coming months, if they can stop dropping from here.
Gold/ Silver Ratio - Historic First - 115 : 1The gold silver ratio (GSR) has set a new 100 year record, with the value of 1 ounce of gold exceeding over 115 ounces of silver.
I would suspect that the drop in silver is largely due to the global slowdown that we are currently facing from the Coronavirus, as silver is predominantly an industrial metal, given that this slowdown is far from over then the logical conclusion would be that silver's move to the downside is not yet over.
This means that despite the GSR being in excess of 115, then higher levels are entirely possible, and are in fact likely.
This comes on the back of silver making intraday lows, below that of the 2015 lows around $13.65, with silver touching $12.70, this means that we could be seeing silver in the single digits in the not-too-distant future, particularly if the global lock-downs continue.
That being said, we are likely to see some enthusiastic buying at these levels from precious metals investors, particularly with the GSR at these levels.
So a bounce is possible, although i do see lower nominal silver prices going forward, the GSR however, may not display the same one sided move.
Sources:
www.macrotrends.net
TIME TO SWITCH GOLD TO SILVER2020 is a year of valuable metals. Gold and silver are Money, others are currency. Gold and silver ratio reached highest level since 1975. Put some Money to silver instead of gold. Silver has a more potential.
Can Gold Silver Ratio Go Any Higher?100:1 is quite absurd. Had thought that as stocks went up, the gold-silver ratio was correlated. But the recent decline in stocks has only exacerbated the ratio. Mining representatives relate how the ratios coming out of the ground are 8:1. We truly live in a world where markets have no relationship to reality. Definitely time to shift precious metals purchases to favor silver
DOW GOLD RATIO - Key BreakdownWe may have just seen a key breakdown in the Dow/ Gold Ratio.
This would signal that the period of sustained out performance of stocks over gold, and indeed precious metals as a whole may be nearing an end.
As you can see on the left hand chart, a monthly cross of the 10 and the 50 moving averages was a strong tell that the trend had reversed, interestingly, this cross occurred several years after the peak in stocks.
We may be about to witness a similar signal today, this is predicated on the cross taking place, of course.
in the more immediate future, i would hazard a guess that stocks will stage a strong short covering rally, before petering out, unless there is news related to either progress on containing the Coronavirus or on global CBs mounting an even more desperate attempt to prevent the deflation that is bound to stem from the virus' impact on global supply chains.
That being said, free money will not produce more goods or services, and will most likely signal higher than anticipated inflation in the future, particularly once the virus is contained, more than likely driving gold higher on more traditional inflation fears.
To the right we can see a weekly chart, highlighting the severe technical damage that has been done, with the ratio below the 200 weekly moving average.
All of this with a backdrop of the gold silver ratio hitting over 100 in the last day or two, makes for quite a bullish environment for precious metals and a rather bleak outlook for equities.
GOLD/SILVER RATIO STRATEGY #2 BETTER SILVER FUTURES LONG TRADEDETERMINE WHICH IS THE STRONGEST METAL BETWEEN GOLD AND SILVER
** If the gold silver ratio is in Uptrend and gold & silver in Downtrend: Buy Silver.
If the gold silver ratio is in Uptrend and gold&silver in Uptrend: Buy Gold.
If the gold silver ratio is in Downtrend and gold&silver in Uptrend: Buy Silver.
If the gold silver ratio is in Downtrend and gold&silver in Downtrend: Sell Gold.
The Intermarket relationship between the gold and silver price can reveal a better way to time the metal market.
There may be times when the price of silver makes a new low, but the price of gold doesn’t track that movement.
When something like that happens a possible trading opportunity can emerge.
We can note that the silver price has broken to a new low while the gold price has made a higher low.
This is a break in the gold and silver correlation.
It means that one or the other is lying.
To find out which one, we simply use the gold silver trading strategy rules revealed at step #3.
Based on those rules when the gold silver ratio is up and both gold and silver are moving down, the signal is to buy silver.
For timing the market, we have applied a 20 period MA over the silver chart.
A break above the 20 MA will trigger our entry.
Simple as that!
Final Words – Gold Silver Trading Strategy
When we use the gold silver chart ratio in conjunction with the individual price trends of gold and silver we can determine strong buying and selling opportunities. You can also ride massive trends with the gold silver ratio, especially when we have historical readings. However, since these only happen once or twice in a lifetime you can use our gold silver trading strategy to navigate the day-to-date price action.
The ratio can also be used to determine the overall market sentiment, which is a precious thing that can be used to trade other markets. Usually, a high gold to silver ratio is signaling a slowdown in the global activity, while a low gold to silver ratio is signaling improving risk sentiment.
GOLDSILVER RATIO LONGI recently posted a chart of silver showing the bearish case, I also shared a bullish case for the dollar. In order to confirm the theory of those two I share the gold silver ratio. It is obviously in a bull trend. it has been stair stepping up major fib resistance from the low in 2011 and a smaller sequence from 2016. firmly above the 61.8 on both and well positioned in the upward trend lines
-24th jan an obvious break out of the downward sloping wedge with conviction after testing the lower trend line and 50% fib from 2016 low.could even argue it is Head and shoulderish for this break
-MacD and RSI still have room to move before being oversold/overextended.
I see no reason why we cannot push to 100 or even to 110 before year end. this could be a combination of weak silver vs gold with gold not changing or gold moving up and silver not doing much.
time will tell.
Silver Target of $26 as Silver Plays "Catch Up" to GoldSilver had a nice surge earlier in the year as Gold surged to $1550. Overall, Silver has underperformed gold this year and remains undervalued relative to gold. As the metals finish and round out of this consolidation (retest of the breakout) look for gold to move towards $1711 and $1834. Silver and Platinum will both follow gold's move and will outperform. We could see $26/oz Silver and $1200/oz Platinum as soon as the 2020 spring.
Silver needs to hold above key support, which lies around $15.65-$16.10. A break below this would not be good for the metals market.
I will be accumulating shares of junior silver miners throughout this consolidation.
Miners can be volatile. Know your risk tolerance, know what you're trying to achieve.
GOLD vs SILVER vs GOLD/SILVER RATIOHi Guys,
just some infos.
Following surprising NFP datas today, silver has fallen below B whilst Gold/Silver ratio has run above.
Gold instead remains above B.
Does it mean that Gold will soon follow Silver? I don't know...I am asking. Lol
Here a link to the explanation provided by Investopedia in respect of the Gold/Silver Ratio: www.investopedia.com
And here an idea posted some time ago with some snapshots:
For additional infos about Gold please refer to the related ideas linked at the end of this post.
If you have any questions or comment to add please do not hesitate to post it.
Thank you for your support and for sharing your ideas.
Disclaimer:
Please note that I am not a professional trader and these are my personal ideas only. The information contained in this presentation is solely for educational purposes and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. Cozzamara is not responsible for any liabilities arising from the result of your market involvement or individual trade activities.
IMHO: The point of trading is to make money. To make money you must have money. Depending on the money at your disposal, you can decide what to do and how to do it. By having stops you decide how much you are willing to lose. By having targets you decide how much you want to earn. Be disciplined with your protocol and with your strategies for trading. Sometime you win, sometime you lose. Don't be greedy. Be realistic. Be wary but not afraid. Be curious. Use your brain. As long as your working process make sense and your spirit is calm, everything will be fine. Be patient and be prepared for any circumtances.
Gold/ Silver Ratio - Rising Wedge - One More Leg to 100:1?As any avid precious metals investor would know, the Gold/ Silver Ratio is currently flashing a strong "Buy Silver" signal, with a ratio at press time of over 87:1, this is telling savvy investors that silver is undervalued relative to gold, or that gold is overvalued relative to silver.
I believe that we could quite easily resolve the rising wedge pattern and have a period of mean reversion in the ratio, closer to the 60:1 mark, however at press time i slightly favor the bullish scenario, this is due to several reasons.
1) The presence of a clear 3 wave cycle as highlighted in the ratio, whilst this does not mean that this pattern must repeat, markets do tend to offer clear points of symmetry.
2) The price action for gold is far more bullish than silver, at the end of the day the price action on gold is much more conducive to a higher Gold/ Silver ratio. This is evident in several technical indicators, an example being the fact that Gold has reclaimed the 50% Fibonacci level, whereas silver has yet to reclaim the 23.6% retracement.
3) Currently the ratio has been respecting the lower trendline of the rising wedge pattern, and has been able to hold the 21 monthly ema that being said, 2 closes below this trendline would confirm a breakdown of the rising wedge pattern.
Overall the Gold/ Silver ratio appears to be heading higher, likely to around the 95-100 range, unless the lower trendline of the rising wedge is decisively broken.
Understand Gold & Silver with the GoldSilver RatioGold & Silver investors, you need to keep an eye on the gold to silver ratio. The ratio helps us in deciding how to allocate our portfolio with gold and silver.
The ratio can also help us to identify trend changes and understand what is happening in the metals market. During a metals bull-market the ratio moves decisively lower.
On the chart you can see that metals bottomed out in January 2016 when the goldsilver ratio peaked out at decade+ Long resistance. It then surged lower from 83 to 63. Thats when Gold moved from $1045 to $1375 and silver moved from $13 to $21.
You can also see that the ratio surged past key resistance and peaked out at 93. This move higher was initially driven by lower metals prices due to a hawkish fed. When the Fed did a 180 and began to cut rates, gold surged higher from 1180 to 1350 and correcting back to 1285. During this time silver severely lagged gold causing the GS ratio to peak at 93. Then gold brokeout and surged past $1400 and $1500 and silver tagged along hitting $19. This is when the GS ratio surged lower from 93 to 80.
We’re currently undergoing a healthy correction in gold & silver. The GS ratio may inch higher.
What we do not want to see is 88 recaptured and 89 recaptured. Could mean the GS ratio continues to breakout - a bearish scenario for silver & gold.
What I think is more likely is gold surging to $1700 and $1800 after this correction, with a silver that potentially hits $25. We want to see the GS ratio moving lower for this scenario.
Silver Losing Momentum In silver, we had a strong move upwards from the $17/oz range to a high of roughly $19.755/oz. Recently, however, the price has failed to maintain momentum to regain those highs and has steadily pushed lower in an evident regression trend on the daily chart from 05 Sep 2019 to the present. I believe that silver will retest the $17/oz range, and from there, we will have a stronger confirmation on the short term direction of silver's price. As well the gold to silver ratio rebounded from a yearly low of roughly 1XAU:79.38XAG to currently 1XAU:84.89XAG. In the meantime, I believe silver to be a short trade. However, in the long run, silver seems to be bullish as the gold to silver ratio is at historical peak levels.
