GSR

US stocks down, gold down and closing in on a technical resistance of $1,600, silver down..... its the flight into the US Dollar "safe play" with Euro worries.
 
Slightly side-topic but VRS pointed us to an iPhone app "Gold Ratio Lite" that allows display of various ratios eg I have Gold/Silver overlaid over Gold/Crude oil. It's not live - I think it's every 6 hours? (maybe the "lite" version has restrictions here). Anyway, just in case it's useful!
 
Remember here on SS when the GSR was below 40...I was thinking of trading my silver for gold when it got to 30...It never ever did so I still have my silver only a fair bit more.

Regards Errol 43
 
Was thinking at the start of this week might be time to buy platinum. But will see what the price of silver will be in the morning before buying. I still think at the moment platinum could have more upside.
 
hotel 46 said:
wait till it starts getting towards it historic norm :)
Click to expand...

If silverbugs are counting on a drift down towards a ratio reflecting natural occurrence = 15, well that only seems to have happened for a short time in 1980 during a 36 year span.

Taking the 20 year chart (for convenience) the norm seems to be for silver to be in the half of the chart above 50. The great bulk of the prices of gold in silver are above the 50 bar during the last 20 years. So do punters think GSR is in a downtrend since end of 2008?

Maybe we're in a GSR uptrend that began in June 2011, and has only recently got above 50, and will continue to rise. In which case it would be better to buy gold than silver wouldn't it.

http://goldprice.org/gold-silver-ratio.html#36_year_gold_price

gold_20_year_silver.png
 
It would indeed, finicky.

After seeing the GSR charts, I am too not too hopefully that it will even hit 1:40 again.
 
Gut tells me we're headed towards a higher GSR until Europe is done and dusted. Right now I'm still accumulating gold, even though silver's price is a screaming buy. I remember the first time I rode the GSR down from 80 I thought that 55 was ultra-low and swapped heaps of silver for gold. Funny thing sentiment.
 
It seems to me that the GSR is potentially right on the cusp of turning (like just about everything while waiting for QE or no QE lol)

Yes the short term trend from march last year to date is up, however it is still (just) within the boundaries of the downtrend that started in Dec 2008, so I wouldn't rule out a turn back down to continue the medium term downtrend from here just yet....

2410_gsr_may_2012.png


I've added a few hundred ounces of Ag during this dip, although am keeping powder in reserve just in case... if silver continues to fall from here it could possibly be a real gut wrenching fall, but would provide some mega buying opportunities!

However this is a US election year so who knows what TPTB will do to get back in... (QE anyone?)
 
I don't know if technical analysis is valid on the ratio itself - wouldn't it be more relevant to do the analysis on gold and silver separately, and forecast the GSR that way? The ratio hides the rise and fall of which metal relative to the other is causing a change in ratio.
 
You must log in or register to reply here.
Back
Top