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Goldsilverratio

Gold / Silver Ratio PredictionExpect the gold/silver ratio to leap higher as silver underperforms Gold. Gold will rally but silver will remain muted, at least for a while. Then as the Gold/Silver ratio hits resistance at around 100 a clear buying opportunity for silver will emerge. Gold should rally as the Gold/Silver ratio collapses and therefore Silver is a screaming buy at these levels. Inflation picking up will be the key for silver and the gold/silver ratio collapsing. The Fed will lower interest rates, attempt new rounds of Qe to avoid a recession, but unfortunately all they will achieve will be inflation. Follow the breakdown of the ratio as it hits the upward resistance line, then it'll be off to the races for the pm bull market.
TVC:GOLDShort
by WinstonWolfe
1
Gold/Silver RATIO: some thoughtsHi Guys, "The most common method of trading the ratio is that of hedging a long position in one metal with a short position in the other. For example, if the ratio is at historically high levels and investors anticipate a decline in the ratio that would reflect a decline in the price of gold relative to the price of silver, investors should simultaneously buy silver while selling short an equivalent amount of gold, looking to realize a net profit from a relatively better price performance of silver compared to that of gold." (source: Investopedia www.investopedia.com) Below Gold/silver ratio marking 29th Sept 2008 as the most recent peak at 88% same as today. I've added the same date both in #gold and #silver to show that 29th of Sept 2008 is the dip before skyrocketing. IMHO today's cause for such high ratio is not the same as in 2008. IMHO 2007-2008 Financial Crisis created a distortion that need to be taken into consideration. Since 2011 Gold lost 45% whilst Silver 70%. More ounces of Silver are required to buy Gold but why? Today Gold is up 94% and Silver 73% from last time their ratio hit such an high level. GOLD/SILVER RATIO www.investopedia.com TRADING THE GOLD-SILVER RATIO www.investopedia.com Hope the above clarifies but please do not hesitate to contact me for any queries, comments or feedbacks. Thank you for your support and for sharing your ideas. Don't forget to put a like if you appreciate the post and to follow me if you want to receive notifications on new and updated ideas. Disclaimer: Please note that I am not a professional trader and these are my personal ideas only. The information contained in this presentation is solely for educational purposes and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. Cozzamara is not responsible for any liabilities arising from the result of your market involvement or individual trade activities.
OANDA:XAUXAG
by cozzamara
2
Gold Silver Ratio About to Explode?While the Head and Shoulders pattern is often associated with a topping formation (or bottoming in the case of an inverse head and shoulders), it can often show up as a continuation pattern. Since most of the articles I have read recently about the Gold:Silver ratio state that silver comes out of the ground together with gold in a15:1 ratio, that the market should value this ratio at a level closer to that rather than the recent levels of 80. Some state that historically a ratio of 30 silver to 1 gold is the average. TradingView data goes back 20 years and the chart is quite revealing. It does appear that, based on the head and shoulders continuation formation, that gold is set to greatly outperform silver going forward. Recently, both gold and silver have been falling due to higher US interest rates and a subsequent rising dollar. Silver's recent attempt to reach previous highs of several weeks back failed and the reversal appears to be strengthening, possibly causing silver (SLV) to fall to 13 or even under 10! On the opposite side, in an effort to by-pass US sanctions on Iran, Russia and other countries are looking for alternative payment methods instead of the US dollar. This might add demand to the gold side of the equation. Nothing is yet written in stone and a breakout and test of that breakout level still needs to occur for this ratio to fulfill the measured move expectations of the head and shoulders pattern, but it's good to know that perhaps the more common narrative that the gold silver ratio is too high and needs to come down, along with the other common narrative that the Commitment of Traders report shows that speculators are heavily short silver proves that silver is due for a pop, may all be wrong.
TVC:GOLDSILVER
by Glewis54
1