Loading ...Yield curve TYX to UST2Y vs Silver to gold ratio
All across the maturities YIELD curves are steepening together since last three weeks.
During 2008 huge liquidation of equities YIELD curves began steepening well ahead of market crash. During the initial impulse of get me out of the market sentiment SGR declined as Yield cuve steepened.
Once the dust settled SGR began to rise on the back of Yield curve steepening.
2008:
Yield spread: 15.72 at the bottom rose to 49.22 at the top.
Silver to gold ratio: declined from 0.19 (GSR= 52) to 0.012 (GSR = 83 but daily top= 95)
rest is the history. SGR continued to rise.
Currently Yield curves are steepening and SGR is declining as expected similar to 2008.
Yield curve chart vs SGR below shows the relationship from 2008 -2009 todate. Soon it is expected that SGR can not sustain high level too long. GSR is 300 year high.
Patiently waiting for sentiment to improve.
We all intuitively sort of know what SHOULD be happening. The problem is the waiting and the damage that can be done in a very very short amount of time. GDXJ down 26% in a single day. Wish it knew about the steepening yield curve. I am sure it will respond in time, but between then and now, can you risk more days like yesterday?