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AwesomeAvani
Aug 28, 2022 3:57 PM

GOLD SILVER RATIO as a guide for TRADING DECISIONS 

XAUUSD/XAGUSDOANDA

Description

Centuries ago when the gold and silver standards existed the Gold to Silver ratio was

fixed at 15. Decades ago the ratio was 55. The US dropped the gold standard in 1971

( Thanks Richard Nixon ?) In floating since then, the ratio in modern times has been 75/

It can be said that below 75 gold is undervalued in comparison with silver while

over 75 it is overvalued in comparison.

At present since April 15th ( IRS demand tax returns and payments) the ratio has

consistently risen.

Trading Ideas from this:

Traditionally, an investor would now sell gold and buy silver at a ratio of 75 to 1

meaning sell quantity of gold for instance 5 ounces and then buy 375 ounces of silver

with the proceeds.

Using the XAUUSD and ZAGUSD, a swing trader would short sell spot gold

and go long on spot silver.

An options trader would buy a put contracts in a gold junior miner stock and

then hedge with call contracts of equal value in a silver junior miner stock


The above, are basic examples of how to use the gold to silver ratio as a basis

in trading decisions. The link below is a more detailed explanation of this.
Comments
CrashBandicoot99
Silver is controlled by banking criminals through paper derivatives. It’s a crime of the century.
AwesomeAvani
@RocketFuel20, while silver manipulation is older than the Hunt Bros. and banks have some control, the increasing industrial use of silver for solar cells and electric vehicles is disruptive and is clearly bullish for both silver and silver miners. This is the super trend. My perspective says buy low sell high and right now is low.
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