GOLD - SILVER Ratio
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Original post to Members - 15th May 2020
Posted here - 20th May 2020
[Gold Silver Ratio] It is simply a ratio of Gold rate divided by Silver rate at any point of time. For Example, If Gold is trading at 1700 and Silver is at 16, the ratio is 1700/16 which is ~106.
Over the last 100 years, this ratio has been in the 50-70 range for a significant duration of time with the exception of a few years when it hit extremes on both sides. Another notable observation is whenever the ratio hit historic highs over 90-100, it has seen a violent reversal to the 50-70 range or lower resulting in massive upside in Silver.
This ratio is again over 100 this year. Important to understand though that the reversal phenomenon has taken several years. So, any view should be a long term MULTI-MONTH outlook.
When Silver decides to make its move, it will SHOCK the market. It is not a matter of IF but WHEN.