We hit an ATH again today. As you can see we have entered the parabolic stage of the move similar to 2008-2009. However, I do not think we will see as much of a parabolic move this time. In contrast to 2008-2009, this ratio has steadily climbed over the last 8 years. Additionally, silver has fallen at a much faster rate than gold as of late and I do not see...
it seems , precious metals are hedge instruments no doubt, but if fiat was not there and our currency was the precious metals, silver when in more demand than gold and when that demand is highest would indicate a stock market bottom… a highly sensitive and specific statement in last 2 decades
the viceversa also holds true, but but that statement has higher...
Divergence of Gold/Silver ratio started to show hope..
Do you have any idea why this is happening now ? I'm totally clueless! XD
Anyway Open Short Gold/Silver @ 90$
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As we all know when a 20 year trend breaks, it tends to break quickly and harshly. When the Gold/Silver ratio drops that also means Gold and Silver tend to be in a new bull market. This cannot go on for ever but I could go on for one or two more years before a decision needs to be made by both markets.
The ratio is peeking. 48% decline?
That looks Obvious. Notice the size of the drop late 2010 to spring 2011. That can happen; If the banks need the reserve metal to become liquid. aka JPM Ag bullion. What is the Derivative exposure of JPM? These two factors offset one another.
Silver is WAY low. The ratio can be reduced to 42 . In any case, with out...
Just a chart for reference.
Ratio Down = Risk-On
Ratio Up = Risk-Off
Per FxStreet definition:
A contracting economy usually decreases the industrial demand for silver while gold tends to keep its value as a monetary asset. The reason is that silver functions mainly as an industrial metal while gold serves as a hedge against economic and political uncertainty....
Many people claim that the Silver to Gold Ratio is predictive and that at certain times silver and gold can become over/under priced relative to each other.
If that is the case, then extreme over/under price valuations can be used to time swaps between gold and silver ownership, and you should be able to sell one metal when it’s overpriced and invest the...