Gold / Silver Ratio (GSR) > 80, causes of

It has been observed that the Gold / Silver Ratio (G/SR) exceeding 80 usually correlates with stock-market downturns. (1) This analysis suggests answers to the question of 'why' for three cases where G/SR > 80 between the available data here for GLD and SLV , from 2008 to 2018. Cases:

(1) G/SR > 80 during 2008 because silver crashed harder than gold from a PM peak earlier that year.

(2) G/SR > 80 in 2016 because gold reversed from a crash more vigorously than silver .

(3) G/SR > 80 during 2017-2018 because gold and silver trends parted ways in late 2016, gold tracking a positive trend and silver a negative trend.

Indications: The evidence suggests that investors tend to buy more gold than silver after a PM crash reverses and they sell more silver after PMs crash. Together these indications simply suggest that investors are more bullish on gold than silver during the onset of a PM rise and after a PM crash. That’s no big surprise given that gold is pretty much the King of PMs, the most-famous and go-to PM.

(1) https://archive.is/o1cdL/85c5b143a1ffee7...


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