Changes in the Gold/Silver ratio indicate changes in the demand for Gold as compared to demand for another precious metal, namely silver. Ratio increases often coincide with accelerations in market volatility and, consequently, money flow to Gold, long considered a "safe haven".
The ratio's climb is approximately linear and the black trend line is consistent with multiple reversals in direction. Some of these are labeled with a news headline from that day.
Limitations and future directions: Headlines were chosen under the working hypothesis that the ratio's climb is largely explained by the spread of the Covid 19 virus. It would be useful to understand the nature and strength of this association. Another direction of inquiry is the association between the ratio and, within the Covid 19 context, other measures of sentinment and volatility (VIX, Real Estate, etc.)
The ratio's increase supports a long position in gold.
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