GOLDSILVER trade ideas
Gold / Silver and what it means for SilverSilver is losing to gold as it has been for months, but we're getting close to the gold/silver ratio of 98-100 area. At that point this chart should reverse which likely means - Gold starts getting a bid and Silver starts to outperform Gold. So yeah this ongoing dip might be the one to buy for long term, but keep in mind this can go on for a few more months.
GOLDSILVER - Keep an eye on GOLD:SILVER ratio and place your betGOLDSILVER seems to have fallen into approximate Bollinger Band behaviour over the past months.
One cannot say it has exactly as there are always exceptions.
However, a triple crossover of the upper band is a fairly strong indicator that a down tick is imminent.
So either gold will fall or silver will rise. It is for you to decide and place your bets...
As always cross-check with other indicators.
Good Luck
Goldybug
Gold/Silver Ratio 1MThe Gold/Silver ratio has had a significant run from April 2011 to March 2020. Pushing the price of gold much higher than Silver.
Although this is a very boring chart to keep watch of, currently price action is holding support at the 81 zone. However, the RSI is holding a more critical support at 50.
While measuring the SRSI, momentum seems to favour the downside.
Perhaps some much needed re-balancing is in our lucky stars for Silver.
How to “invest” silver with gold/Silver ratio. 6/Oct/22Gold/Silver chart ratio normally used by hedge fund to “Swift” within “Silver” or “ Gold” assets. They usually “treat” ratio of >=100 as buy silver instead of gold vice versa for below <= 50..Instead of follow 50-100 rules. Traders could “read” gold/ratio chart spotting where its “support/resistance” located and decide to “hold” silver or gold.
Silver Boom - $GOLD & $SILVERI'm long term bullish on both gold and silver. With rates rising in the short term, ehh idk, but that's not the purpose of this post and real interest rates are still largely negative.
Disregarding the spike in the gold/silver ratio in 2020, the gold to silver ratio is at all time highs. Silver has proven in the past to be a potentially better hedge against inflation over gold, although both are good. Silver has legitimiate real world applications as well.
Considering the state of the world and US conditions, I love gold and silver in the medium and long term as a way to hedge against major instability.
Good luck people, protect yourself with some real money in Gold/Silver at least some....
- C
Time to buy SILVER?Please LIKE, COMMENT, or SHARE for your SUPPORT.
For those that know me, I've been looking at gold and silver very closely over the years. I last purchased them during the crash of 2020 with an average cost of $17 an ounce of silver and $1450 an ounce of Gold. I used the dollar cost average method to build my positions. I then sold the gold at $2050 an ounce and silver at $25.50 an ounce. This was a 50% profit move for silver and a $40% profit for gold.
All we can do as traders are enter and exit a position where it is statistically accurate based on the trend that we're in. We use indicators, other technical tools and news to spot changes in the trend early on and then build our positions when the market meets our criteria. Since then I have waited for Gold and Silver to look more attractive.
Over the last year, the velocity of currency was quickly on the rise. In other words, people were coming out of their homes and spending all their hoarded money. By creating more dollars, the supply of the total dollars rose in comparison to all the GOODS/SERVICES and ASSETS in the world. This is important since those are the true wealth of an economy. This wealth is not inflatable like the dollar. Yes, it could be inflated by the dollar causing its price in dollars to rise but you cannot create more of this type of wealth with a click of a button.
The Fed at the time was regarding inflation as "transitory," and there was still no end in sight to bond purchasing and artificially inflating the market. In simpler terms, there was no end to the money printer. The better bet seemed to be in real estate, stocks, and cryptocurrencies like Bitcoin. I jumped ship until the Fed announced rate hikes and a smaller balance sheet. Why? Because investors were willing to in a sense "bet on the Fed." There needed to be a reduction in printing. It's begun but still not enough to fully combat the monster of inflation that is coming and what's already here.
Between the COVID impact, people not working, and being supported by the government through STIMULUS checks and other government funding programs, inflation was due to kick in at some point. This is because nothing is free. This is true even if the governments give us "free money." That money did not exist before it showed up in our accounts. Essentially, they are opening a new credit line for each person they give a check. This was not just happening in America but all over the world. The world did not gain more resources but the means to purchase those resources has been growing rapidly.
With 7.89 billion people in the world plus some who have already died and received a check, imagine what that would do when unleashed back into the world economy. America is currently flashing the yellow light to slow down the money printing while every other nation is still on the green light. This can be reflected in the US Dollar index which is a measure of a hand full of currencies vs. the dollar. Today, as these things are going on, the index shows the dollar strengthening. This is not because it can purchase more things but because the values of other currencies are going down.
Traditional markets like the Dow Jones, Nasdaq, and the S&P500 are not looking good. This is usually when some look for a way to hedge their positions since we don't know which way the market will go in the short term. Traditionally one way that is done is with precious metals like GOLD and SILVER. Right now, gold priced in silver is becoming more expensive. As the Gold/Silver ratio rises, it is often more desirable to hold more silver than gold and vice versa in hopes of stabilization of this ratio.
In a world of high inflation, storing one's wealth in fiat currencies is like storing your money in the S&P 500 but in reverse. Inflation is skyrocketing all over the world. Even Russia, because of the money printing, oil hikes, and the stress of war, suffered double-digit inflation. It seems like it won't be long before inflation in the US enters the double digits as well.
Enter every trade at your own risk. A trade can be short-term to long-term. Have a strategy set with rules for both short and long-term trades. Stick to it based on the fundamentals if you're looking at something to invest in for the long term. For a short to medium trade, look for a good setup and expect a shorter timeframe in which you hold your position. As you can see, the three different ways to trade are short-term, mid-term, and long-term and each requires a different approach. Even if you hedge your position in dollars, don’t forget that its purchasing power is evaporating through inflation.
None of this is investment advice.
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This Akshay Tritiya buying silverThis is a comparative chart of Silver along with GOLD SILVER RATIO. Its hows Whenever the ratio reaches 85-87 zone it tends to top out resulting in a Silver rally. Moreover, more it goes down the appreciation of Silver increases than Gold. Only exception was 2020. Well that was a year of all exceptions. We are at that mark again. To me its a good opportunity to grab Silver with sl below 21 on closing basis.
Gold/silver ratio completing Inv H&S; it is saying a lotIn this weekly chart, 67 to 81 have been an impt range for multi-year consolidations (see the 2014 4-year consolidation box & the recent 2020 & on-going Inv H&S. Pattern). When price is rejected by 81, silver rallies more. When price bounces from 67, gold rallies more.
Starting 2021, the ratio has formed an upchannel from the bottom of the head. This channel has led to the formation of the RS. For the H&S to remain valid, price must not break below the lower channel. (Maybe just a small beartrap is ok).
Also we can see that since 2020, price attempted several times but failed to breakout of this neckline at 81. The same is true for 2014 to 2018 conso box.
If it again fails this week to BO the neckline (more probable coz both gold & silver are retracing), price may go down to retest the lower side of a BIG blue upchannel started since 2009 top to 2011 bottom.
Notice that the H&S pattern has been whipsawing using this lower channel as pivot. Thus this time price may retrace down again to this pivot somewhere near 74 before another rally to BO neck.
An Inv H&S BO would mean that finally, after multi-year consolidation, gold & silver are both ready to break much much higher.
Not trading advice
Just giving a shout out for the silver chartI think I need to re-visit something I wrote on the 17th January on the Silver market, at the time silver was trading at 23.04…. to my eye it looks even more interesting now, it has finally started to lift off the 21.17 pivot and the obvious targets are the highs around 28/30 seen back in 2020.
This is what I wrote in January…’ I was chatting to a techie friend of mine (Thomas Anthonj) last week and he told me to have a look at the gold/silver ratio as he suspected that it has completed the 5th wave of an Elliott wave count, so this morning I took a closer look and yes, I think he is right.
In addition, the market has remained capped on the topside by its 200-week ma at 82.10 and we also note the divergence of the weekly RSI . This is a measure of momentum and divergence normally indicates a loss of upside momentum.
Given that we both think the gold/silver ratio has topped, this would suggest that gold will underperform silver . So, is silver the better bet for an up move? I took a look at this on both the daily and weekly charts and was reasonably uninspired but when I got to the monthly chart this was looking a whole lot more interesting!
The market has spent months consolidating just above the 21.17 long term pivot and looks to be base building longer term. So, we suggest that silver is a market that needs to go on the radar we suspect as this should see a decent recovery off such solid support.’
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