The silver/gold ratio broke below 52 and closed at 51.68 Friday, and looks set to challenge 50/1 this week. The ratio has tightened by nearly 10 since late June as silver has significantly out-performed gold during this 7 week rally, as is typical for the metal during big bull market rallies.
The breakdown of the 6-month chart is a strong indicator that while we should expect to see sharp corrections in silver to consolidate gains, this bull move appears to be the real deal.
Gold/silver ratio of 50/1 should correlate to Silver $36- and is a strong possibility to be seen this week- particularly if official QE3 is announced Thursday.
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_silv.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_gold.gif)
We may see the day (10-20) years when the ratio goes to 1:1. Silver keeps getting used-up and has more industrial applications. Supply is running out!
Keep stacking..while you can!!
The battle to a free market goes on. Hopefully it won’t take 10 – 20 to see the truth.
Nice to see some chart-posting and discussion about technical indicators. In the past, the technical charts have been soundly ‘poo-poohed‘ here, so it is refreshing to see otherwise. Sorting through the PM market requires considering a mix of the technicals, past performance, plus there are the individual investor’s emotions & gut feelings involved.
And then – at the other end of the seesaw – there are those who are manipulating PM prices…
I take it the idea is to exchange Gold for Silver when the Silver-Gold ratio in high, and to exchange Gold for Silver when the ratio is low.
These current a-historic gold to silver ratios have consistently stopped me from buying gold. So I can get a half ounce of gold, or 25 ounces of silver. Hmmm … let me think about that while I blink. Ok, I’m done – history tells me Aggie is a no-brainer. Not that gold is overvalued in today’s fiat dollar terms, just that silver is way more undervalued based on historical ratios. Silver is a sleeping giant IMHO.
I think that the gold and silver ratio will reach 1/50 very fast because it is getting more attention which means that there are more buyers arriving. Then, silver will be mentioned in the mainstream media like gold and then more people will rush which means that silver may pass 50$ per ounce and even more!
I could easily see the Gold to Silver ratio by years end at around 1/36. $2200Gold / $60 Silver. Eventually it will be 1/16.It should be an interesting few months, but in all honesty I would rather the Gold to Silver ratio remain where it is indefinitely. I/we can make plenty of money by other means. I really would prefer not to see an economic collapse where all friends and family suffer financially. Despite all evidence and warning signs they will not try to prepare until it is too late.