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XAUXAG trade ideas

the importance of COT open interestmost are confused by gold:silver ratio. this really only matters if youre doing physical swaps. yea this would be an ideal spot if you were planning on doing a swap gold for silver. but buying silver outright, not necessarily. the ratio may reverse but doesnt necessarily mean youre an instant winner long silver. now if youre doing credit spreads this ratio is extremely useful. aside from that faily psychological. if youre a physical dealer, now is an opportune time to swap physical gold for physical silver. for traders i say pay attention to open interest changes on COT reporting. you'll notice silver is fairly balanced on managed money side. however gold has a growing imbalance on the long side. if the trend is your friend. gold is in favor vs silver, ride that wave. also question why people are long gold and the implications of how aggressive powell will have to be to compensate for lack of fire power. based on the past the fomc has had 5bps of cutting power during a downturn. with 2.25. we dont even have half.. so... QE is likely to be used again if this cycle is really beginning to turn against us.
OANDA:XAUXAG
by The_dumpster_diver
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
XAUXAG - Short term strength in Silver relative to GoldWith XAUXAG looking to fall lower, it is an indication that silver will be relatively stronger than gold in the short term. If you are looking to buy into the precious metals, silver may be a better metal to focus on. If you are looking to sell into the dip on precious metals, gold may be a better choice. *Disclaimer - This analysis alone DOES NOT warrant a buy or sell trade immediately. Before you enter any trade in the financial market, it is very important that you have a proper trading plan and risk management approach. The sharing of this idea is neither necessarily indicative of nor a guarantee of future performance or success.
OANDA:XAUXAGShort
by KarYong