I kept reading.. if the gold to silver ratio goes down.. then price of silver goes up.. but isn’t there an occurrence where the ratio can go down and have both gold and silver price go down? Just that the price of silver is going down less fast than gold. So if this scenario is possible, then following purely the gold to silver ratio as an indicator on increasing silver price could be dangerous…

So I had to look at charts and see how well the price of silver historically correlated to the famous GSR!

Monthly chart show we are close to no correlation right now.. has not happened often since ’76.

So, I go on the weekly chart for guidance on possible turn around. Lo-and-behold… we have been approaching a high negative correlation for the past few weeks! If this continues, the monthly chart should show this! Great for silver longs!

And A final zoom in on daily chart… the -1 correlation is back on track since September… sweet!