$GOLDSILVER ratio might continue to divideThis could be really bad news for the silver bugs(me included) but P&F chart shows continuation of the trend which might exceed 100. I more tend to be bullish on the gold rather than silver at this stage due to some accumulation from the central banks, but gold reaching 2000 means silver stays around 20 for long period of time. If you notice 2007 when the recession started the ratio rallied significantly. Now this could be the case again.
pp.sorry for the messed up chart the 45 degrees angles went crazy after I published them.
Goldsilverratio
SLV Upward Bias ViewAs SLV appears to be entering into a bull market phase, interesting to see possible channel ranges. In 2021, I could imagine to see $40 as the midpoint. That could be consistent with a gold/silver ratio moving down to 40. Of course, knowing how silver trades, a $2 smackdown could occur in any moment ;-)
Gold/Silver ratio still needs to break below trendline for bullsStill awaiting key level to break... in the past few cycles it was stubborn and required a retest of the overhead supply breakdown (about 86.0)... currently the level is around 83.0.
The bottom panel shows the ratio... on top panel I have plotted SnP500 in blue and gold (in gold color) and silver (in silver color). You can see the lats two crisis also had periods of significant gold and silver price pullbacks... it's not all straight to the moon for the precious metal moon boys.
Gold / Silver Ratio Hint of Further Silver StrengthGold / Silver Ratio is resuming it's downward trend after backtesting long term trend line.
Good probability that this trend will continue.
1) Falling GSR confirms bullish trend is still intact.
2) Expectation of silver to lead gold during the next move up.
Gold had a lot more volatility vs. silver during the last run up (choppy price action trading mostly within tight range)
Silver trade
1) enter early and ride out the consolidation so you don't have to time the breakout
2) wait for a pre-breakout price action setup (daily / 4 Hour chart / 1 hour chart)
Gold/ Silver Ratio - Flashing BUY Silver - 88.48 to 1The current Gold/ Silver ratio is settled at around 88.5 (at press time) this represents a historical outlier and a fantastic opportunity to leverage the movement of silver to great effect.
As you can see the ratio is in a rising wedge, with it set to resolve in the not too distant future, these patterns tend to run quite long before resolving, usually into the climax of the pattern near the point of convergence.
A historic mean of the ratio is around 45 to 1, that would mean a purchase of silver today would equate to purchasing 2x the amount of gold, side note, never measure precious metals (PM) in fiat, always measure in ounces.
This pattern could continue until the point of convergence, this would suggest a ratio closer to 100 to 1, however, it is best to enter a PM position in tranches, as it limits the reliance on market timing.
Nevertheless, this ratio currents represents a tremendous buying opportunity, one that you would be smart to take full advantage of.
XAUXAG- Big drop coming ?Post making multi decade high, steep drop and now consolidating.
Looking at other macro factors, why should it not been seen as staring of wave 3?
Supported by multiple Inside bars, a break should initiate that?
looking for feedbacks on this..
Gold to Silver R retesting multy-year H&S's NecklineBetting on laggards is like hoping to get drunk by being late to the party.
Silver - Breakout - About to Start Leading GoldThat's a long way down.... :)
Sitting on the edge of the cliff.
Comparing price action in gold and silver today. Silver looks ready to take the lead.
Metals setting up for a big rally.
Looking back gold rose over $400 in two months 2011.
Banks are used to dumping paper gold shorts hitting sell stops, driving the price down. Lately it looks like those sell stops have been replaced with buy limits..... Price goes down a few dollars and then rebounds hard and fast.
Banks have lost control.
The silver party is around the corner! Hodl until the end!!Silver prices are suppressed for several years now the first signs of recovery are here
Gold Silver Ratio goes back where it needs to be.Perfect oppoertunity to Short XAG/XAU and buy silver until it's still cheap.
silver taking offgold to silver ratio will minimize. price increase in silver. soon ratio of XAU:XAG will go from XAU=80XAG to sub XAU=30XAG.
MEDIUM TERM(XAUXAG): WAVE COUNT|BULLISH TARGETS+STRUCTURAL [TA]Commodity and Fixed Income Series : Part 1 Commodities ( Ratios+the most popular and widely traded Commodities )
The Essential note s from this chart are the following( Indicator analysis included in the comments ): {4.5 minute read}
To begin with the easiest part of the chart. The supports were identified on the quarterly chart which will be linked in the comments. There are 3 main support levels :1. ~80(RED LINE) 2. ~70-66(BLUE LINE) 3. ~58-60(GREEN LINE)
Somewhat more difficult part of the chart are the bullish targets . There are 2 main targets and 1 psychologica l. The 2 main targets were derived based on fibonacci extensions from the quarterly chart #1 ~94, #2 ~110 ; and the obvious psychological target is circa: 100 .
Q: What is the method used to label the Wave count?
-Following the ABC correction(2008-2011), gold has clearly outperformed silver. This is partially because of the new production methods that were introduced after 2012( more cost-effective extraction of silver as a byproduct while mining for other metals). In effect, this boosted the supply of silver relatively to gold; positively affecting the gold-to-silver ratio . Hence, the W-X-Y-X-Z Wave count fits the best into the current chart structure.
Q: Bullish on silver? - Not yet . As it can be observed from the chart, prior to the ABC correction(2008-2011) ; there was a boom in the demand for gold as the primary metal of value used as a protection against inflation . This pattern should occur during the next recession, yielding a potential target for the ratio of around ~110.
Other worthy notes: 2020 Election will have an impact on practically every market; Commodities are no exception . Nevertheless, in the medium term , I am relatively more bullish on silver in comparison to gold . This is supported by continuously downtrending volume as we progress through the bullish channel(pitchfork) . The ABC orange labelled correction is obviously a far fetched idea, since we do not know the timing nor the absolute top for the ratio yet. It's included just for the sake of general market principles.
P.S. I do realize the chart is quite hard to be understood, mostly because it is labelled to the smallest and extreme detail. If there are any poor understandings of the labels, I'd be able to answer any additional questions in the comment s.
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Step_Ahead_oftheMarket- {Make sure to check out my previous series on US(SPX) Sector including 11 episodes of the major US sectors}
This chart is a continuation to one of my most popular charts from last week:
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Gold/Silver Ratio: Will Equalize Until Q1-Q2 2020 Then SpreadIn my many several Gold posts I have clearly described the near-term and long-term paths for Gold. However, in this write-up I will describe my thoughts on the Gold/Silver ratio.
In the near-term, even though Silver has clearly lagged Gold (as depicted by the current 88:1 ratio), I believe this will equalize in the near-term and ultimately pick up pace through Q4 2019/early Q1 2020, until we reach about 68-71:1.
Once we move into the mid-point of 2020, I see the overall global economy continuing to deteriorate and Gold gathering tremendous momentum especially as most of the world continues to push for negative rates and yields and focus on extreme monetary devaluation to push our overextended bull run further.
Because a lot of Silver is used in some form of manufacturing and is not as inherently lucrative as Gold, I see Silver still increasing in value, but at a much more slower pace once we reach mid 2020.
Therefore, while Silver will likely increase quicker than Gold (on a %/day level) once it reaches 17, in the long-run, I am significantly more bullish in Gold than Silver. However, Silver will continue to rise, but at an eventual slower pace.
- zSplit
Gold / Silver Ratio PredictionExpect the gold/silver ratio to leap higher as silver underperforms Gold. Gold will rally but silver will remain muted, at least for a while. Then as the Gold/Silver ratio hits resistance at around 100 a clear buying opportunity for silver will emerge. Gold should rally as the Gold/Silver ratio collapses and therefore Silver is a screaming buy at these levels. Inflation picking up will be the key for silver and the gold/silver ratio collapsing. The Fed will lower interest rates, attempt new rounds of Qe to avoid a recession, but unfortunately all they will achieve will be inflation. Follow the breakdown of the ratio as it hits the upward resistance line, then it'll be off to the races for the pm bull market.
20 Year Bearish Rising Wedge in Gold/Silver Ratio? As we all know when a 20 year trend breaks, it tends to break quickly and harshly. When the Gold/Silver ratio drops that also means Gold and Silver tend to be in a new bull market. This cannot go on for ever but I could go on for one or two more years before a decision needs to be made by both markets.
GOLD UPDATE , ONE LAST PULLBACK THEN BULLISHgold may hit to 1365-1375$ soon then fallback to 121x's or 1180$ once again this year.
target for 2021 : 1500+
Gold/Silver RATIO: some thoughtsHi Guys,
"The most common method of trading the ratio is that of hedging a long position in one metal with a short position in the other. For example, if the ratio is at historically high levels and investors anticipate a decline in the ratio that would reflect a decline in the price of gold relative to the price of silver, investors should simultaneously buy silver while selling short an equivalent amount of gold, looking to realize a net profit from a relatively better price performance of silver compared to that of gold."
(source: Investopedia www.investopedia.com)
Below Gold/silver ratio marking 29th Sept 2008 as the most recent peak at 88% same as today. I've added the same date both in #gold and #silver to show that 29th of Sept 2008 is the dip before skyrocketing. IMHO today's cause for such high ratio is not the same as in 2008. IMHO 2007-2008 Financial Crisis created a distortion that need to be taken into consideration.
Since 2011 Gold lost 45% whilst Silver 70%. More ounces of Silver are required to buy Gold but why? Today Gold is up 94% and Silver 73% from last time their ratio hit such an high level.
GOLD/SILVER RATIO www.investopedia.com
TRADING THE GOLD-SILVER RATIO www.investopedia.com
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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.
SILVER UPDATE... ONE MORE PULLBACK TO 13.xx's POSSIBLEsilver still may go down from around ~16.50 to 13.xx$ before the big bull run.
consider to take profit if you're already long.
13.50-14.00$ re-entry.
target for 2021 > 32.00$ +
good luck.
