Loading ...Silver to gold ratio vs 10yr to 2yr ratio Yield spread.
Today Yield spreads gapped up. As yield spread widens sooner or later SGr will begin moving higher like it has done in past.
TSI Blog:
Post From Feb 19 2008:
“Since late 2003 the gold sector of the stock market has been in consolidation relative to gold bullion, but the rapid widening of the US yield-spread over the past 6 months — as indicated on our chart by the sharp rise in the TYX/FVX ratio — suggests that this lengthy consolidation will soon come to an end. To be more specific, it suggests that the gold sector of the stock market will soon commence a multi-quarter, or perhaps even a multi-year, rally relative to gold bullion.”
http://www.321gold.com/editorials/saville/saville021908.html
A 30 year chart shows lately in current FED intervention era SGR is positively related to Yield spread.
POLLYANNA is alive and well
I’ll believe it when I see it.
Too much “Silver on the verge of Exploding” talk for a while now
Well they were right…Today it Exploded !
I’ve never seen the importance of Silver and SGR (and conversely GSR), when trading Gold.
Silver does not need to be rising for an exceptional Gold run.
During 2000-2004, SGR was falling the entire time until the very beginning of 2004, which ironically is when the Gold Bull took a long breather.
There are too many possible outcomes for this relationship to be useful. Relationships work until they don’t; if they always worked, there wouldn’t be a game — everyone would be a winner.