Gold/Silver ratio: Long term bearish decline

OANDA:XAUXAG   Gold/Silver
The Gold/Silver ratio             shows an interesting setup here, and correlation to inverted SPX             , which points to the nature of the ratio's movement tied to risk off/on phases. This has to do with the real world applications silver             has as an industrial metal, compared to gold's function as a store of value and risk off protection.
I think we can see a long term decline, implying the price of silver             will either appreciate or depreciate less than the price of gold             , in comparison to it at least.

It's probably a good trade to take as a pair, which if you're using futures , implies you use a 2 to 3 ratio, selling 2 GC             contracts and buying 3 SI contracts to enter the trade with reduced margin requirements. (I think there's a new contract for the ratio alone, but not familiar with it). You should size the trade based on risking 1% to 2% max if the price were to go against you coming back to 70.43.
In the case of CFD             or FX traders, you could open trades in the XAUUSD             and XAGUSD             instruments, or using this XAUXAG or XAGXAU contracts if they exist in your platform. If you own physical gold             , exchanging it for silver             makes sense at this point (if you didn't already).

Good luck,

Ivan Labrie.
Comment: On track, quite a scare but it's going well now.
Comment: Change of direction in the ratio implies risk on sentiment is waning, we could see a rally in gold next.
this trade is back bro
@Mdotee., yes, Silver is a great long here.
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
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
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder 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