Loading ...Gold: Silver Ratio
Lots of Charts both Bullish and Bearish to look at this Weekend in the PM Complex
None more Surprisingly Bullish than this one
a 5 year Well Defined Rising Wedge is not something to be taken lightly .
When Silver is Outperforming Gold that is usually Very bullish for the PMs
When Silver is Out performing Gold this ratio declines.
The Ratio has dropped from a High at Point 8 of 85.27 to now 72.44
This week was the breakout !
A backtest would be 74.
Note Martin Armstrong …for those who put stock in his work …
It is my understanding that he said a Weekly Close below
73.10 on this ratio would signal a trend change for PMs. Anyone Confirm ?
Deflation hath been quashed, for this cycle.
Fully,
guy from SFS suggested a backtest of GSR to the region of 76.
http://www.321gold.com/editorials/sfs/hubbartt042216/gold_vs_silver.png
If major BO for silver is expected, then Gold has to play catch up back to GSR 74-76?
http://www.321gold.com/editorials/sfs/hubbartt042216/sil_major.png
Is the silver up-move overdone? Bob Hoye on howestreet.com says “Yes” in his latest interview:
http://talkdigitalnetwork.com/2016/04/gold-silver-and-metals-rally-continues/
Gold, Silver and Metals Rally Continuing
Bob is looking for a cyclical bull market in precious metals but is warning that the silver rally is very overbought. One of his favourite indicators ins the daily RSI (relative strength index) on the silver:gold ratio. If it goes above 78, he considers it a warning sign.
See charts here:
http://1000gold.blogspot.com/2016/04/is-silver-up-move-overdone.html