In February I posted an idea to short gold and buy silver simultaneously at the 79 oz level as the ratio hit the top of the multi-decade range. The progress was surprisingly good and I wrote about it in July update and then the ratio stalled. Today I would like to show how we can use this respite to pocket gains.
Below is the ‘face-lifted’ February chart where I put focus on the main idea.
Chart 1. Gold/Silver Ratio: Mid-Range Set Strong Barrier
In my February post I called for the topping of the ratio as it hit the upside of the long-term range. The idea was to short gold and buy silver simultaneously at the 79 oz level. It's gone very well, and you can see it in the following charts.
Below is the reconstruction of the February chart to refresh your memory.
Chart 1. Gold/Silver Ratio Monthly: Half Of The Range
Back in August, I updated my gold/silver ratio chart with conservative bullish targets. Today I would like to share my growing concerns about the ratio's dynamics as fresh highs haven't appeared since my first post. As I've said many times before, let us not to be biased. Change the charting when the chart changes!
Chart 1. Gold/Silver Monthly: Tarnished Diamond
Chart courtesy of tradingview.com
Above is the reconstruction of the chart from the previous post about the ratio. I added several remarks in red the call-outs and also put the middle of the green channel in a dashed line. But the most important addition is the simple, classic Momentum indicator below the chart with remarks. Continue reading "Gold/Silver Ratio: Gold Loses Its Shine"→
Gold/Silver Ratio: "Shines Bright Like A Diamond."
Chart 1: Gold/Silver Ratio Monthly
Chart courtesy of TradingView.com
Last December I had written my first post with quite an ambitious target for this ratio at the 109oz level as a possible outcome of a very rare diamond reversal pattern (highlighted in blue lines and the target is highlighted in blue horizontal dashed line). At that time the ratio was at the 72oz level and it has advanced 11% now to the 80oz level. Continue reading "Gold Ratios: Gold Is A Top Killer When You Need Safety"→
You are now leaving a Magnifi Communities’ website and are going to a website
that is not operated by Magnifi Communities. This website is operated by Magnifi
LLC, an SEC registered investment adviser affiliated with Magnifi Communities.
Magnifi Communities does not endorse this website, its sponsor, or any of the
policies, activities, products, or services offered on the site. We are not
responsible for the content or availability of linked site.