Gold/Silver Ratio: Will Equalize Until Q1-Q2 2020 Then Spread
In 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
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
