Saturday, April 12, 2014

Gold Silver Ratio Remains near Nosebleed High Levels

Ratio timers to buy silver and trade gold for silver now and soon. 

20140411 GSR

The gold/silver ratio closed the week near 66 ounces of silver to one ounce of gold, a nosebleed high level.   

Looking at any long term graph of the ratio suggests that with the ratio this high it is time to buy silver, to put on long term option exposure to the long side of silver and to trade gold for silver. When the ratio reaches its upper limits it is usually only a matter of weeks before the ratio plunges to much lower levels, usually corresponding with a rally in the price of silver. 

20140411 GSR LT

Since 1990 it is our observation that the upper limits have generally been falling for the GSR, from near 100 in the early 1990s, to the 80s near the turn of the century, and now something under 70. 


The Original
Vulture Speculator

Trading gold, silver and mining shares since 1980 with a focus on taking advantage of volatility extremes, Gene Arensberg analyses the markets through a basket of technical and fundamental indicators and shares his findings from time to time here at Got Gold Report. Mr. Arensberg has been quoted in the Wall Street Journal, Dow Jones MarketWatch, USA Today and dozens of other news organizations.

"I've been a huge fan of Gene and his amazing work for years..."

Brien Lundin, CEO, Jefferson Financial, Host of the annual New Orleans Investment Conference and Publisher of Gold Newsletter

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