New price action from last week's close is a reiteration that the gold/silver ratio -0.20% is likely going to go lower by at least 25%. Today it takes ~68 ounces of silver 1.41% to buy one ounce of gold -0.34% .
The bet: This year it will take 50 ounces of silver 1.41% to buy one ounce of gold -0.34% .
10 months ago I published the pending breakdown in this ratio. The double top in the chart above is the 25-year critical level shown in the chart below. One thing to note, every time silver 1.41% outperformed gold -0.34% in the last 25 years, both metals traded higher (this makes sense since silver 1.41% is the higher beta commodity). That suggests BOTH metals are likely to trade higher (though may not be the case in the future).
The bet: This year it will take 50 ounces of silver 1.41% to buy one ounce of gold -0.34% .
10 months ago I published the pending breakdown in this ratio. The double top in the chart above is the 25-year critical level shown in the chart below. One thing to note, every time silver 1.41% outperformed gold -0.34% in the last 25 years, both metals traded higher (this makes sense since silver 1.41% is the higher beta commodity). That suggests BOTH metals are likely to trade higher (though may not be the case in the future).
