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...
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out