GOLD - SILVER Ratio

Please note that all updates posted here are NOT real time and have a time-lag UP TO few hours to days depending on the bandwidth available with us to post here and on twitter. The updates are meant for information only. For the purpose of trading, real time updates are critical and mandatory. 

For REAL TIME ACCESS to technical views/analysis of 25+ Commodities, Forex Pairs, Indices, Stocks, we are currently offering a FREE TRIAL

 

Original post - 28th June 2019

Posted here - 16th July 2019

[Gold Silver Ratio] It is simply a ratio of Gold rate divided by Silver rate at any point of time. For Eg. If Gold is at 1400 and Silver is at 15, the ratio is 1400/15 which is 93.3. 

This ratio has mostly been in the 50-70 range majority of the times with the exception of a few years where it reached extremes on both sides. The ratio is again within striking distance of 100 which is the historical high. Each time the ratio has approached the high, the pull back has been violent and massive pushing the ratio back to at least the 50-70 range resulting in huge upside for Silver.

Important to understand though that the phenomenon of pulling back from an extreme to the 50-70 level has taken several years. So, any view should be a long term multi-month view.

It is not a matter of if Silver will SHOCK, but when.