Loading ...GLD:SLV RATIO
When Gold (GLD) is rising faster or falling slower than SILVER ( SLV) the PMs Suck !
This chart is pretty interesting in that there are a ton of gaps…ALL filled …except One.
There are quite a few here seeing a March Bottom for PMs….so this Double top in the Ratio fits.
WEEKLY LOOK is very interesting too
Excellent Charting FGC and this shows we need Silver to breakout soon and lead to the upside
Couple thoughts… I have a hard time getting my head around the actual significance to the gaps on the chart. I am not convinced they actually have much significance. I don’t see an analogous meaning to a straight stock chart since the psychology and the mechanical dynamics are just totally different. Not sure maybe someone can shed some light on them.
Also if the ratio enters the we’re screwed zone as you depict (a break out) the message there would be of a major credit contraction leading to a likely major market decline. After the initial whacking of all stocks the PM stock would likely go up.
Point 1 :
Gold and silver trade 24 hours w while GLD and SLV trade in market hours…thus the gaps.
Point 2 :
Interesting
gotta have a credit contraction as that FRED chart of interbank lending sheds some light, the amount of money flowing between banks has fizzled to a drip along with money velocity. Nobody in the up and coming generation has cash, they finance junk autos, payment plans for everything. Housing market got pushed for years by extending the mortgage time limit which increased values and free money. Baby boomers on the other end get tight with spending and cost the coffers with medical and pensions which increase taxes which take more cash out of the system. The one way is to increase the time on mortgages to 35-40 yrs which makes payments /affordability to the equation and hope the new buyers go get credit lines to keep the cash turning. Obvious that the banks have NO CASH as the savers are gone and they need the credit push cycle to line their pockets.
IMO a credit crisis is a given. Baby Boomers have been coddled since the 50’s. Many have not planned for retirement while others are exceptionally wealthy. IMO there is going to be a transfer of wealth from the haves to the have nots. The Boomer generation has always had a underlying socialist theme. It’s going to be interesting when the Boomers have to turn to other Boomers too pay for there pampered ways. The ability to in-debt there children and grand children is quickly drying up. Classic end to an economic empire.