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Gold Silver Ratio

Commodities / Gold & Silver 2020 Jun 11, 2020 - 05:19 PM GMT

By: Nadeem_Walayat

Commodities

I am afraid I have got some bad news for all the Silver bugs out there, for the gold / silver ratio chart makes it crystal clear that Silver is NOT a safe haven precious metal. Yes you may still call it a precious metal but it is NOT GOLD! That's for sure!


So come to terms with the fact that Silver given the facts on this chart is NOT a safe haven. For if Silver were a safe haven the Gold / Silver ratio would not have rocketed to over 130! When the SHTF investors did not buy Silver they bought Gold! In fact they DUMPED Silver!

SILVER IS NO LONGER A PRECIOUS METAL! If it were a precious metal than the ratio should not have gone about 95, instead it rocketed to 132! So Silver whilst we can all buy silver coins and bars, Silver is mainly an industrial metal, a bit like copper, so we should not look towards silver for immunity during crisis.

That's not to say that it won't be influenced by the inflation mega-trend it's just that contrary to the financial crisis when Silver WAS a precious metal rising from about $12 to $25. This time Silver has not done what a precious metal should have done at a time of crisis.

All we can glean from the Gold / Silver ratio chart is whether Silver is cheap relative to gold or not. However the problem is that Silver cannot be expected to react in a similar manner to Gold in a crisis which means Cheaper silver can get a whole lot cheaper than anyone can imagine!

So is Silver cheap relative to Gold? YES it is, as long as there is not another market panic which would trigger another sell off in Silver.

A fair ratio to Gold would be about 85, which would put the Silver price at $20.30, so there is further room for Silver to play catchup to the Gold price as long as there is not another market panic around the corner! Whilst recent extremes have seen the ratio fall to 50, which would project to a Silver price of $34.86, obviously the ratio falling to 50 is not very probable anytime soon.

The whole of this extensive analysis that concludes in a detailed trend forecast for the Silver price was first made available to Patrons who support my work: UK and US Corona Catastrophe Trend Analysis, Stock Market State and Silver Price Trend Forecast Summer 2020

  • UK Corona Catastrophe Trend Analysis
  • FEEDING THE INFLATION MEGA-TREND
  • US Corona Catastrophe Trend Analysis
  • The Corona Riots of 2020 Have Begun!
  • Stock Markets Failing to Give Another AI Mega-trend Buying Opportunity
  • Silver vs Gold Trend
  • Gold Silver Ratio
  • Silver Long-term Trend Analysis
  • Silver Trend Analysis
  • Formulating a Trend Forecast
  • Silver Price Trend Forecast Conclusion

So for immediate first access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $3 per month. https://www.patreon.com/Nadeem_Walayat.

And ensure you are subscribed to my ALWAYS FREE newsletter for my next in-depth analysis.

Your analyst.

Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2020 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Housing Markets Forecast 2014-2018The Stocks Stealth Bull Market 2013 and Beyond EbookThe Stocks Stealth Bull Market Update 2011 EbookThe Interest Rate Mega-Trend EbookThe Inflation Mega-trend Ebook

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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