Loading ...Gold Silver Ratio and it’s correlation to Silver
To help manage expectations to what a decline in the GSR does to price of silver… well since +40 years… overall the negative correlation is pretty high (not perfect, but relatively high).
Monthly noise reduced. Notice the GSR was not correlated (or barely) in late 2003 and 2008… before resuming it’s powerful correlation on the precious metals bull run.
Weekly, more noise
We know the drivers for Gold . Lower Interest Rates , Systemic Risk , Fed behind the curve etc
What’s the driver for Silver ?
None of the above IMHO
Inflation is the only one I can think of…Silver is mostly a commodity.
And there isn’t much sign of that at the moment
Inflation or Financial crisis two very very different drivers of the PM space one should evaluate such phases before trying to interpret what or how the GSR has any relevance with the PM miners IMO? Or future prices of either commodity……
Good points guys. I’m just digging the charts to try and find the best skewed reward vs risk relationship in my favor. Right now, the golden nugget, or should I say silver nugget, sits within the silver juniors miners.