Gold to silver ratio and Yield spread 10 yr to 2 yr
Thanks to Sir Fully for allocating space for Yield curve spread post on side bar.
Gold to silver ratio or inverse silver to gold ratio is key to miners trend for 100’s years.
When GSR goes up miners in down trend and vice a versa.
It is solid relation like of full moon and ocean high tide.
BUT what makes GSR trend?? It changes due to market sentiment.
From bottom of 2002 to 2007 GSR was independent of the yield spread of 10-2 yr yield. BUT tied to spread between 30 yr and 5 yr bond rates.
During 2002 to 2007 HUI outperform S&P 500 by miles. Contrary to that from 2012 to current it is opposite .
Since 2012 it changed to positive relation as shown on the the current chart below. The curve is flatenning GSR has stays higher. It is expected when the curve turns up GSR may follow.
Why ?? I do not know.