On Wednesday I made a post that showed the “metallic credit spread” (as coined by Bob Hoye) known as the Gold/Silver ratio (GSR) flipped on its head (to Silver/Gold) to indicate a dangerous situation for the S&P 500, if past is prologue. Here is that post and here is the Tweet that followed…
Here's a chart for 98% of market participants to ignore https://t.co/AUJWmvxlEf via @NFTRHgt move along, nothing to see here (unless of course there is)... #gold #silver #spx pic.twitter.com/Upnet9kdTQ
— Gary Tanashian (@NFTRHgt) August 11, 2021
Silver, with more cyclical inflation-sensitive characteristics than gold (which is more counter-cyclical with utility during liquidity crises), has broken down of late vs. its monetary daddy. The chart speaks for itself as to why caution and risk management are now warranted. Continue reading "Market Liquidity Is Draining From Different Vantage Points"