Gold/Silver Ratio - Silver about to appreciate significantly
Very interessting stuff.
It look like silver is about to continue wave C down as it is completing wave 2 in a 5 wave down-move. Both commodities are declining of late, although silver would appear to be closer to its support (my published TA gold has the potential to decline to ~$5 to 600 over the next few years) while gold may have only retraced partially from ts 2011 highs.
The wedge formation in silver is likely an ending fifth wave diagonal that has broken downwards, after the impulse move down (either possibly already complete or maybe one more wave down to $14.60 to come (it depends on which source you look at)) silver looks set to then form the basis of an impulse wave up. In the scenario outlined in the chart (simple ABC correction with a 1:1 extension), purchasing silver would improve your gold purchasing power by 20%. If however, wave C down extends to 1.618 (like it did in 2011) this would increase your gold purchasing power by 45% in comparison to today.
Personally, if gold enters a 2-4 year bear market, I wouldn't really want to buy it until this period has ended or neared its end. I find this interesting more because I am bullish on silver and this is just another piece to the puzzle.
Happy trading. This is 100% technical Analysis (Elliot Wave with some fibonacci) and no fundamental analysis has been conducted. This analysis is published solely to further my own education.
It look like silver is about to continue wave C down as it is completing wave 2 in a 5 wave down-move. Both commodities are declining of late, although silver would appear to be closer to its support (my published TA gold has the potential to decline to ~$5 to 600 over the next few years) while gold may have only retraced partially from ts 2011 highs.
The wedge formation in silver is likely an ending fifth wave diagonal that has broken downwards, after the impulse move down (either possibly already complete or maybe one more wave down to $14.60 to come (it depends on which source you look at)) silver looks set to then form the basis of an impulse wave up. In the scenario outlined in the chart (simple ABC correction with a 1:1 extension), purchasing silver would improve your gold purchasing power by 20%. If however, wave C down extends to 1.618 (like it did in 2011) this would increase your gold purchasing power by 45% in comparison to today.
Personally, if gold enters a 2-4 year bear market, I wouldn't really want to buy it until this period has ended or neared its end. I find this interesting more because I am bullish on silver and this is just another piece to the puzzle.
Happy trading. This is 100% technical Analysis (Elliot Wave with some fibonacci) and no fundamental analysis has been conducted. This analysis is published solely to further my own education.