The gold/silver ratio broke through significant resistance at 51 this weak- on a DOWN MOVE in gold and silver- almost unprecedented relative strength in silver during a cartel raid.
The ratio hit 50/1 early Friday, and a break through the level early next week will confirm a serious move in silver is underway.

 

  1. Make a downtrend line on the ratio from the peak near 59 and the recent high of 54.    That could be where the ratio goes (about 52:1?) before the downtrend resumes (which will coincide with silver breaking out of the low/mid 30s, and gold breaking $1800.   I fully expect the 30:1 ratio to be approached on the next big move in gold/silver.    Just like when it was 31:1 when silver was $49+ and gold $1500ish.   Perhaps Ag in the $100 area and gold near $3000?   Or silver at $70 and gold $2100-2200?

    • You’re right! I never realized that because I almost never watch the gold to silver ratio’s chart. If you also draw a line from the 2008 low price to the recent 2012 low price on the silver’s chart, you’ll see that silver never went lower than that line and that it is rising.

  2. Now, the gold to silver ratio went back to about 51.25 ounces of silver for one ounce of gold. But, gold and silver’s prices are moving a lot recently in terms of US dollar because the US dollar is going down right now. The US Dollar Index right now is at 79.90 which it recently went lower than 80!

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