Gold/ Silver Ratio - Flashing BUY Silver - 88.48 to 1The current Gold/ Silver ratio is settled at around 88.5 (at press time) this represents a historical outlier and a fantastic opportunity to leverage the movement of silver to great effect.
As you can see the ratio is in a rising wedge, with it set to resolve in the not too distant future, these patterns tend to run quite long before resolving, usually into the climax of the pattern near the point of convergence.
A historic mean of the ratio is around 45 to 1, that would mean a purchase of silver today would equate to purchasing 2x the amount of gold, side note, never measure precious metals (PM) in fiat, always measure in ounces.
This pattern could continue until the point of convergence, this would suggest a ratio closer to 100 to 1, however, it is best to enter a PM position in tranches, as it limits the reliance on market timing.
Nevertheless, this ratio currents represents a tremendous buying opportunity, one that you would be smart to take full advantage of.
GOLDSILVER trade ideas
Gold/Silver ratioGold/silver ratio at a historic high level of 90% (peaked at 93% on July 3rd)!
Silver is currently very undervalued and Gold has gained strength last few years which means that silver is discounted much more than gold at the moment.
Silver prices are falling and demand from big investors is raising.
I think this extremely high Gold/Silver ratio of 93% was the peak which is also indicated by momentum indicators on the 1W TF (not on the chart).
In a few weeks / months we will also see sell signals on multiple momentum indicators on the 1M chart.
Blue/red line will cross soon on StochRSI, WaveTrend oscillator will also cross bearish in a few weeks/months and ADX will lose bullish power.
Therefore, I think NOW is a perfect time to exchange gold bars with silver bars!
In a few years time will come to go back from silver to gold bars...
I´m not a financial advisor. For educational purpose only!
Silver - Breakout - About to Start Leading GoldThat's a long way down.... :)
Sitting on the edge of the cliff.
Comparing price action in gold and silver today. Silver looks ready to take the lead.
Metals setting up for a big rally.
Looking back gold rose over $400 in two months 2011.
Banks are used to dumping paper gold shorts hitting sell stops, driving the price down. Lately it looks like those sell stops have been replaced with buy limits..... Price goes down a few dollars and then rebounds hard and fast.
Banks have lost control.
Gold/Silver Ratio: Will Equalize Until Q1-Q2 2020 Then SpreadIn my many several Gold posts I have clearly described the near-term and long-term paths for Gold. However, in this write-up I will describe my thoughts on the Gold/Silver ratio.
In the near-term, even though Silver has clearly lagged Gold (as depicted by the current 88:1 ratio), I believe this will equalize in the near-term and ultimately pick up pace through Q4 2019/early Q1 2020, until we reach about 68-71:1.
Once we move into the mid-point of 2020, I see the overall global economy continuing to deteriorate and Gold gathering tremendous momentum especially as most of the world continues to push for negative rates and yields and focus on extreme monetary devaluation to push our overextended bull run further.
Because a lot of Silver is used in some form of manufacturing and is not as inherently lucrative as Gold, I see Silver still increasing in value, but at a much more slower pace once we reach mid 2020.
Therefore, while Silver will likely increase quicker than Gold (on a %/day level) once it reaches 17, in the long-run, I am significantly more bullish in Gold than Silver. However, Silver will continue to rise, but at an eventual slower pace.
- zSplit
GOLDSILVER med term swing strategy and possible resistanceHello,
Thanks for viewing.
This is a combined post (slash essay);
1. Trading the valuation oscillation between silver and gold for profit / accumulation, and
2. Possible signs of resistance on gold stretching its relative valuation on silver.
Some of it will probably mirror well-established strategies, re-state some more obvious aspects, but hopefully, may be of value.
1. I am a relatively new entrant to the market, this is how I intend to weight my purchase of precious metals; Above gold-silver ratio (GSR) of 80 to buy exclusively silver / sell gold and to reverse the trade below a GSR of 45. Based on this chart there would have been a number of entry and exit points over the past 21 years. Each would have allowed for profit and or to accumulate additional precious metals. So right now, I am weighting my purchases very heavily in favour of silver (the only reason why I am still buying any gold is for peripheral reasons such as receiving favourable terms on gold at the moment, high liquidity, and ease of transport). If I had access to a physical market with greater liquidity, more favourable terms, and had zero concerns about possibly picking up and moving at short notice, I would be buying 100% silver.
Some trades using this strategy may result in a financial loss e.g. if both gold and silver drop further in price (until at a GSR of below 45) - but silver is nearer its base-line and doesn't dip as far in % terms I may sell silver for a $ loss in order to purchase a larger quantity of gold vs the quantity available for the equivalent $ value as when I purchased my silver. I am relatively comfortable that silver is near / very near its bottom - in the majority of US mines it is already produced below the minimum sustaining cost (of course this does not mean that the price cannot decline further).
Due to the local physical bullion market (buy price well above spot price and unfavourable buy-back terms) for silver being unattractive in my current location I am buying silver elsewhere using bullionstar.com in Singapore as it allows small purchases (1 gram minimum) very low premiums (7.56%) on certain items, and reasonable buy back terms (current spread 5%). If they prove to be a reliable partner, it will also solve any storage and security issues as they offer vault storage for low fees (the % fees are low BUT the min daily storage fee means that your charges are higher in % terms (than their quoted % rate) until you hold around SGD36,000 of siver or SGD77,000 of gold). When gold drops below a GSR 45 I will be able to trade back to dollars, or more likely convert into gold.
What will I get for my troubles (minus storage fees and spreads) in 2 to 5 years? Around twice the amount of physical gold bullion that I could get for my money now. One more swing of the pendulum and I could expect around 4x the amount originally invested back in silver. Rinse and repeat. Yes, physical metals are not dividend or interest bearing - but they are profit generating while being an effective inflation / fiat devaluation hedge (as seen in Argentina, Turkey, and Venezuela recently). While deflation seems more likely than inflation recently as the world struggles to stoke inflation I certainly feel better in times of uncertainty with silver, gold, and bitcoin as part of a diversified portfolio.
2. The GSR currently seems on the high side. Historically, relative values tend not to remain above 90 for long periods. I expect 90 - 91 (wave 1 and wave (i) 1.618 extensions) to offer resistance against further rises based on wave extensions, and failing those, 93 is a feasible end-point (Wave (1) 1.618 extension). There is reasonably strong bearish divergence shown on the RSI and I would be looking for higher highs to display as lower highs on the RSI after one more touch of the short-term trend-line. Hopefully, I have presented a plausible EW count for the present move.
Thanks for viewing
SILVER SUMMITSilver to Gold Ratio of 100 to 1 is in sight!
100 to 1 odds looks likely given that the ratio is now 92.7 to 1.
Looking at the monthly chart of the ratio going back to 1998,
it would almost be a shame if silver didn't spike to 100 to 1
with gold!
It is now necessary to watch for this abberation in the silver/gold ratio.
It will surely hit 99.999 just to catch those who are banking on
100 with their stops! :)
I am looking to buy more gold but with the ratio so out of whack with
normality, I have decided to go all in for silver at these levels and
will certainly be buying silver when the ratio reaches 99.999!
Anyway fellow traders it's a very interesting hypothesis, and one
unique chart to keep an eye on! This means that after
the ratio tops out at or near 100 to 1 with gold, the price of silver
will explode to the upside as the ratio corrects downwards (to a more normal
66 to 1 or even less which could take several years)
In any event, I'm looking to add & buy silver on downwards corrections
Disclaimer:
This is not trade advise! No liability will be accepted for your trading losses!
RaSantana's ideas or publications are meant for educational purposes only, and are
given in good faith! If you are unsure or have any doubts about your actions, you
should seek advise from an investment advisor!
It must be realised that I am a human and as such, even I can make mistakes! :)
Errors in judgememt and misinterpretations can and will occur, so trade at your own
risk!
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