Gold/Silver Ratio Going Lower#Gold / #Silver Ratio: It's been tap dancing around the 87 level for 2 years. This look like it's going lower to me - 81 next target. $GLD $SLV $SIL $GC
What do you guys think?
GOLDSILVER trade ideas
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.
$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.
Prefer Silver to GoldThe fall of this ratio would mean silver would give you more return than gold. So, its better to buy silver than gold if you are willing to trade commodities. Silver's long term target is at 24 (18.16 as of writing).
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.
Gold or Silver?According the chart, Gold had bigger growth potential than Silver. Now it felt way below 200 daily average trendline.
If it bounces back: nothing special, life goes on.
But if we have a trend reversal confirmation Silver / USD price will probably rise faster than Gold / USD price.
Gold/Silver ratioGold/silver ratio at a historic high level of 90% (peaked at 93% on July 3rd)!
Silver is currently very undervalued and Gold has gained strength last few years which means that silver is discounted much more than gold at the moment.
Silver prices are falling and demand from big investors is raising.
I think this extremely high Gold/Silver ratio of 93% was the peak which is also indicated by momentum indicators on the 1W TF (not on the chart).
In a few weeks / months we will also see sell signals on multiple momentum indicators on the 1M chart.
Blue/red line will cross soon on StochRSI, WaveTrend oscillator will also cross bearish in a few weeks/months and ADX will lose bullish power.
Therefore, I think NOW is a perfect time to exchange gold bars with silver bars!
In a few years time will come to go back from silver to gold bars...
I´m not a financial advisor. For educational purpose only!
You will see 20 to 1 silver to gold ratio IMODuring the next crisis you will see silver rise 2000% imo. Last time when dollar was in bear market silver rise 1000% except this next crisis will completely destroy the dollar as the world reserve currency imo.
Gold/Silver Ratio Going DownGold/Silver Ratio is Bullish. Needs a close below the current support to confirm it is starting to go down from here to the 70s print. Similar action to May 2016 meaning there can be at least one leg higher in the metals going forward.
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.
Gold or Silver?It looks Gold has a much bigger "name" in the market on the long turn.
Silver is undervalued, can be seen on many forums. But if it is true, than Gold is much more undervalued according to this chart.
Gold:Silver Ratio to CLOSE!Silver has not been this cheap to Gold ever! The rising wedge is a bearish terminal pattern and should reward Silver investors almost 2:1 as far as gains, to those who stack Gold! Look for a confirmation in reveral with a break of 83:1. TARGET 50:1
Silver rally should continue - Gold / Silver RatioTimed the breakout almost perfectly yesterday. In my opinion, silver bullish impulse should continue. Watching the pattern on this Gold / Silver Ratio chart for signs of exhaustion....
Gold Silver Ratio supporting a break higher in SilverSupporting a breakout in Silver shown on related chart....
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
