Saturday, January 7, 2012

Gold Silver Ratio

1 year daily chart of the Gold Silver ratio with a 20 and 50 day moving average.

The RSI indicator above has a peak in late September 2011 and another during the latter half of December 2011. The trend line connecting these two points in on a downward trend, but the ratio depicted in the chart below is on a bullish uptrend.

This is what many technicians call a divergence which may signal a decline in the ratio going forward (?)  When? It may be a little while as Silver needs more speculators to come into the market to push the price back up over the $30 level and then past the $40 level (again). 

Hedge funds are most likely waiting for the Silver chart to start producing higher highs and higher lows before they invest capital back into this market.


  1. Nice post about silver gold ratio, The US dollar holds the title of “The Worlds Reserve Currency.” This means that if you are a government or corporation going outside of your borders to buy oil, food etc. you must pay for those goods with US dollars. Therefore, all currencies are judged against the dollar.

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  2. Your right about the USD, it is sad but true regarding the 'reserve currency'. People will eventually realize that it is one of the most counterfeited currencies out there and will migrate to Gold and Silver. It's coming, just a matter of time.