Loading ...GSR Update
Still can’t see how this is viewed as bullish in it’s current state. Please note that the ratio rarely ends bear markets without violence. People are ignoring the BO like nothing happened and it’s clearly respecting the voltage in the rail. Added some possible reaction numbers to keep an eye on with 89 in the near term. A move to 115 would be an all in event for me but it may not happen until 2023-26. Haven’t updated prices in the spreadsheet in a year so the SC chart is out of date but it doesn’t really matter. Happy to wrong here…get below 80 and I’m on board but until then I think it can spike higher. The log boundary comes in between 107-110 while the linear comes in at 115-116. It has respected the linear quite well. Regardless, a rapid rise over 100 should have everyone sitting up straight.
To me it’s all driven by Silver now which is sitting at the lower end of the range (50/200 day MA) verses Gold – I am watching for a weekly close below 14.5 – alarms would be sounding! – until then GSR can turn down from here, FWIW
PS I use the RENkO chart to smooth out the quick spike and reversals
http://schrts.co/cWCKgCqF
Thanks Patty, always appreciate your view. I do think that if GSR is destined for those targets we will still have a kick ass rally next year before it continues up. To me silver and gold are still building out a bigger pattern that nobody has identified yet…and most likely will put in a 4th point in larger degree charts….maybe a bigger triangle? Silver clinging to DB theory as of now but many battles to be won yet.
https://www.tradingview.com/x/BPu6jC8M/
commercials preparing for a big run…question is, how much will they be able to run it before the fuse is lit.
https://www.tradingview.com/x/yIWxfuwH/
Nice charts as always! (I love looking at the “Big” picture long-term charts!)
Nice chart, interesting perspective!
Thanks T Bone
Scism….thanks for that first long term chart.
My comment is WOW ….whay do we think the GSR has Any predictive value as far as the Price of Gold ?
The peak was 1990 at 102.
From there it dropped to 35 in 10 years ( silver beat gold by 3X)….and all the while Gold dropped also !
We have to rethink this ratio as being of any use whatsoever
What am I missing ?
well, if you were into metals swaps for accumulation purposes it would pay off. To me it just confirms that we are not in secular metals bull market….without a declining ratio there’s not wind in the sails. Its certainly not perfect at timing but I think it offers clues.
Agree with Schism here that we may not be in a secular bull market for metals. Along with the GOLD:OIL ratio, I think we’re presently in a secular bull market for stocks.
https://goldtadise.com/?p=442351
Great charts!! Looks like a 90 year inverse head and shoulders. What would stop GSR from breaking out above the 100 year channel? I saw a gold-bashing headline the other day: “Gold to be near worthless when gold on other planets and asteroids can be mined”. Maybe that coincides with GSR 185 in the year 2100? LOL
That’s a funny headline. I’ll worry about that when I see the first drill rig getting loaded onto space X. lol I didn’t show the most bearish channel as its out there a bit…even for a “what if” scenario.
https://www.tradingview.com/x/UsWlSiOE/
oh wow, I was just joking but looks like GSR may have a legit shot at 200 sometime in the future!
btw, Gold 666 rabbit hole: Bible verse connecting the number 666 and ‘gold’ in the same sentence!
“Now the weight of gold that came to Solomon in one year was six hundred threescore and six talents of gold.” – 1 Kings 10:14
what?? that’s pretty interesting. Damn, now I have to research biblical math.