Gold / Silver ratio hits 80 - What happens next?
It seems that we have again hit a gold / silver ratio of 80/1 as Friday's market close draws in.
Every time over the past 25 years that the G/S ratio got this high it signified a large drop in the ratio as a result of a rising gold price, with silver rising even faster.
With everything that's happening in the market today (see my last post below) are we looking at an imminent turn for the Gold / Silver market?
https://steemit.com/steemsilvergold/@unclehermit/market-collapse-dead-ahead-black-monday-anyone
It is today's downward correction in gold and silver that has caused a spike in the ratio but it shows that we are now at extreme low valuations in gold and silver. The damage in gold has been negligible so far, silver faired slightly worse. Other markets (stocks, bonds, real estate) have been booming for many years now. As we watch the market carnage unfolding before our eyes could it be that the ratio is telling us again that things are about to turn?
Monday should be interesting if nothing else. Indeed, the market action today suggests that some significant fundamental, geopolitical or economic news is anticipated this weekend.
For disclosure, I'm not a professional advisor and this is not investment advice, merely my own observations of the market and indexes, so do your own research.
Here's a chart if you followed through with this Buy silver @80 , sell gold strategy. Buy gold @35, sell silver.
Per this chart, your 100 oz of Gold would have converted to 44,949 oz of Ag.
Time to buy silver then ;)
Per the chart, it looks like the ratio has extended out to 100 back in 1991, but silver is a screaming buy over gold at the moment. The graph states your existing gold holding should be sold now.
I don't think you need to sell gold - tops in the ratio tend to be bullish for both metals.
Its called the tax reform domino haha should see silver and gold begin their upward march as the mythical dollar correction takes hold ... buckle up its gonna be the stuff of legends... as its always been a legend to begin with right haha great post btw I love stuff like this thanks again
It's a pleasure. Thank you for your comment.
Gold and silver will go up dear.You can note my comment and you will see big change soon
I think you might be right, although nothing is ever certain in this world.
Here are my guesses as to what will happen this weekend in order of most likely.
Any other possibilities?
Thanks for the post uncle.
Well we didn't really get much of those, apart from the FISA memo, although I'm sceptical as to whether that will go anywhere. There seems to be lots of chatter and excitement about it on the alternative media circles, but that often leads to nothing. We'll see.
As for the market, after such a fall a small bounce is inevitable. However, we will have to watch in the coming days. The dollar has surprised me by bouncing back aggressively.
Wow. Didn't realize it had gone back that high. Thanks for sharing!
Easing back to 79 now, but gold has fallen quite a bit today. If silver starts to fall to the same extent I would expect the ratio to go higher still.