Silver/Gold Ratio Compared to SPX

422 lượt xem
422 4
Many people claim that the Silver to Gold Ratio is predictive and that at certain times silver and gold can become over/under priced relative to each other.

If that is the case, then extreme over/under price valuations can be used to time swaps between gold and silver ownership, and you should be able to sell one metal when it’s overpriced and invest the proceeds in the under-priced metal. This trade would improve your profit potential as opposed to buying and holding only one metal over the long term.

In practice, you should sell gold and buy silver when they trade at the low end of its historic S/G ratio. This is difficult to do in shorter time frames, or when silver and gold have been tracking in tandem, but that is not what is happening now.

Right now, silver compared to gold is the "Perfect Storm" trade. When the bubbles start to collapse, silver prices will rise much faster than gold . The Silver/Gold ratio will eventually revert back to its historic mean, and likely overshoot it.

Keep a close watch on the directions that the Fed is predicting for interest rates. When the central banks start to panic, you will see them come out in force trying to prop markets up with talk. When "talk" fails and the markets start to collapse in unison, they will start dropping interest rates and go full bore QE just Like 2009.

The biggest "Everything" bubble in history is now upon us, and you can clearly see the effects of 10 years of Quantitative Easing.
Phản hồi
Thanks for this post. I am very interested in both gold and silver (I do hold silver bullion). I agree with everything you have said. One thing though I question, is what you say in regards to the Feds and QE. Part of the issue we have right now is that interest rates have been held so low for so long, that if we do have another slide like we did back in 2008, the Fed no longer has the tools for QE that it did back then. Do I understand that correctly? What could the ramifications of that then be?
Phản hồi
JesseL Bremily01
@Bremily01, This links provides some good info to answer your question.
Phản hồi
@JesseL, Thanks for the link.....thats pretty much what Ive thought.
Phản hồi
VI Tiếng Việt
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Trang chủ Bộ lọc cổ phiếu Bộ lọc Forex Bộ lọc Tiền điện tử Lịch kinh tế Cách thức hoạt động Tính năng Biểu đồ Quy tắc Áp dụng Người điều hành Giải pháp cho Website & Nhà môi giới Widget Thư viện Biểu đồ Chứng khoán Yêu cầu tính năng Blog & Tin tức Câu hỏi thường gặp Hỗ trợ & Wiki Twitter
Hồ sơ Tùy chỉnh Hồ sơ Tài khoản và Thanh toán Ticket Hỗ trợ của tôi Liên hệ Hỗ trợ Các ý tưởng đã đăng Người theo dõi Đang theo dõi Tin nhắn riêng Trò chuyện Đăng xuất