GOLDSILVER trade ideas
GOLD/SILVER Ratio! Sell Gold, Buy Silver?
Hello,Traders!
What an interesting chart I've discovered right now.
A chart from the era of the bi-metallic monetary systems
Where both gold and silver were used to mint coins
However, history aside, the chart is very telling
And we can see that gold is overvalued in relation to silver
And the breakout of both the rising channel and a massive horizontal level
Indicates that the pair is in the downtrend long term
But how to use it? There is no such thing as Gold to Silver futures right?
Well, you can create this contract artificially on your trading account
By shorting Gold and buying Silver proportionally
By doing so you are creating an artificial Gold/Silver contract
As the USD factor cancels itself out of both pairs
So this way you are indeed trading gold against silver!
Sell!
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See other ideas below too!
XAGUSD: Why I Think Silver has LOWER to GOIF you trade SILVER you Should be familiar with The GOLD/SILVER RATIO, which typically moves INVERSELY to the PRICE of SILVER,
The GOLD/SILVER RATIO looks to be completing A WAVE-B correction, with WAVE-C starting soon in both GOLD/SILVER RATIO & SILVER, (albeit moving in INVERSE/opposite directions).
SILVER = SHORT.
GOLD/SILVER RATIO = LONG.
Gold/Silver ratio cycles signal an upcoming smoke show in pm's.This is a related idea and I recommend to scan the previous ones at least briefly to understand what I am about to say.
As you can see cycles totally support the bullish market in gold and silver, since silver moves more percentage terms than gold in both directions - the reason why the ratio swings up and down. I expect gold to reach around 2050-2070 and silver 32.5-33.75 by late February-early March - that gives a 61.3-63 target range for the ratio - double bottom and a place where the ratio will bounce causing a short term pull back in the metals. Then mid April - right around the cycle top in gold and silver, the cycle will be bottoming for the ratio. The targets I figured for gold and silver for April are the following ranges: 2450-2520 (Gold) and 42-44 (Silver) - gives a ratio range of 57.3-58.3 - what a coincidence - at that time there will be an upper boundary trend line waiting at this exact point.
Gold/Silver bearish outlook-Public sentiment for silver prices being too low compared to gold
-Currently sitting at 61.8% retracement on long term weekly chart
-Physical silver retail demand higher than normal
-Solar and EV industries increasing demand for physical silver
-Next major support level at 58.3, potentially putting silver in the $30-31 range
-Must watch the ellipse for confirmation of forecasted pattern
Gold/Silver ratio critical pointas you can see in the Gold/Silver ration chat, there are and golden fibo support at 0.618 and also trend line and the effort of Rabin hood group in social media to moving up the silver price and passing from this critical point deems on next week we have a surprised news from silver
GOLD / SILVERHere is a "ridiculous" gold/silver ratio chart .. We know markets love extremes, so it is perfectly "normal" for a swing in one direction (gold/silver = 120) to swing in the other direction (gold/silver=25) .. so even though it is ridiculous for a rational mind to expect gold +$2400 and silver +$110 by May, that is what the chart says ..
I could try to rationalize it:
- money temporarily leaving crypto currencies (gold/bitcoin ratio chart suggests the same)
- money leaving stock market - optimism has reached ridiculous^2 levels (I expect flash crash into March/April)
- or horde hordes of retail investors after running out of small stocks to melt up will melt up silver for a change ..
only time will tell.
