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GOLD/SILVER RATIO

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GOLDSILVER trade ideas

Gold/Silver Ratio - Silver about to appreciate significantlyVery interessting stuff. It look like silver is about to continue wave C down as it is completing wave 2 in a 5 wave down-move. Both commodities are declining of late, although silver would appear to be closer to its support (my published TA gold has the potential to decline to ~$5 to 600 over the next few years) while gold may have only retraced partially from ts 2011 highs. The wedge formation in silver is likely an ending fifth wave diagonal that has broken downwards, after the impulse move down (either possibly already complete or maybe one more wave down to $14.60 to come (it depends on which source you look at)) silver looks set to then form the basis of an impulse wave up. In the scenario outlined in the chart (simple ABC correction with a 1:1 extension), purchasing silver would improve your gold purchasing power by 20%. If however, wave C down extends to 1.618 (like it did in 2011) this would increase your gold purchasing power by 45% in comparison to today. Personally, if gold enters a 2-4 year bear market, I wouldn't really want to buy it until this period has ended or neared its end. I find this interesting more because I am bullish on silver and this is just another piece to the puzzle. Happy trading. This is 100% technical Analysis (Elliot Wave with some fibonacci) and no fundamental analysis has been conducted. This analysis is published solely to further my own education.
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by flyinkiwi10
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.
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by Glewis54
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