Ratio This
I wrote this earlier this morning and was going to wait till tomorrow morning to post. Given FGC’s post on the topic, I figured now was timely. There is far too much talk about ratios. You don’t use ratios to time entries and exits. They can provide an historical perspective to where in a cycle you might be. The only ratio I really care about is gold/silver. I don’t use it for anything except to confirm what we all, already know. Silver is historically, grossly undervalued. Fully’s point about using it to tell where in the cycle we are is well taken. For most of history the ratio was between 15-20. With the distortions created by paper bullion trading it has been kept higher, 50+ all the way up to last March’s ridiculous 125 or so. I understand this is a precious metals, technical analysis site and many posters get into all kinds of complicated charts with fibs, ratios, trendlines, moving avgs. etc. etc. Stay away from the complications. Don’t let ETF’s, especially ones that contain paper gold or paper silver distract you from what matters, the prices and charts of gold and silver. Everything else is just noise. KISS(Keep It Simple Stupid).
Thanks for the feedback CM
I still love the simplicity of “Chartology” concepts and Ratios are a big part of it. If you follow Rambus his ratio charts are very often telling .
I am getting the picture though that most of your work is based on cycles . Would like to see you post more charts so we can understand your methodology
tia
Fully
No, I look at cycles, just as I look at everything. I don’t really use cycles. I look at the charts and look for patterns but as I have explained in a lot of my posts, comments and answers to questions from other tenters, the thing I use most is symmetry. I time my entry and exists using a lot of symmetrical counts. I get most of my actual entry and exit price targets from gaps.(Examples:Recent posts of buys for PVG, MAG and NEM)
The g/s ratio chart is only important to me on a long term basis.I have been patiently waiting, ie. years for the big swap event