The Gold/Silver Ratio: Gold And Silver Are Going Higher

launch rocketThe price of gold and silver will both hit new highs in 2014. The price of gold goes north of $2,000, and silver will quickly go over $50. When it does, it will get a little crazy.  – Eric Sprott, Sprott Investment Management - SilverDoctors.com

Since the Federal Reserve was founded, the GSR has ranged from 15 to 100.   The low-end of the range usually correlates with bull market tops in gold/silver and vice versa with the high-end.
Currently the GSR is 60, and I believe the recent movement in the GSR is signalling the possibility of a big move ahead for gold and an even bigger move for silver. [Read more...]

Global Currency Reset, Amero, The Gold Silver Ratio and $150 Silver

gold rallyThere are a number of reasons that silver should revert to the long term historical mean but the two primary ones are the fact that geologically in the earth’s crust there are fifteen parts of silver to every one part of gold.
The other reason is that silver is used in many industrial, technological, medical applications today and since the Industrial Revolution a huge amount of silver has been used up.
It is for this reason that we are more bullish on silver than on gold in terms of price. We continue to believe that silver will surpass its inflation adjusted high of $150/oz in the coming years. [Read more...]

Silver: The GSR Bottom Finder

gold bottomSix of eight significant silver market lows in the past 23 years occurred when the GSR (gold to silver ratio) was > 64 and the RSI (Relative Strength Index of the GSR was < 35.
Silver, in late June and early July 2013, met the above criteria, along with a near record low RSI of the GSR, and a record low in the TDI Trade Signal Line. These are strongly bullish conditions.
The June/July 2013 low looks similar to the 2004 and 2008 lows.
We will see if the upcoming rally is similarly explosive, taking both gold and silver to new bull market highs. [Read more...]

Guest Post: The Case for Silver

silver-price2

Submitted by Deviant Investor

Silver has no counter-party risk. It is not someone else’s liability. The same is NOT true for hundreds of paper currencies that have become worthless, usually because the government or central bank printed them to excess to pay the debts of governments that did not control spending.

Since Nixon “closed the gold window” on August 15, 1971 and allowed the dollar to become an unbacked paper currency that could be created in nearly unlimited quantities, the gold to silver ratio has ranged from a high of approximately 100 to a low of approximately 17.
There is room for silver prices to explode higher, narrowing the ratio to perhaps 20 to 1. When gold reaches $3,500 (Jim Sinclair) and subsequently much higher in the next few years, and assuming the ratio drops to approximately 20 to 1, the price of silver could approach $200 per ounce, on its way to a much higher number, depending on the extent of the QE-Infinity “money printing,” panic, hyperinflation, and investor demand. [Read more...]

Year in Review: The Top SD Stories of 2012

20122012 is almost in the books.  That means its time for another review of the year’s top stories on SilverDoctors.

The most important and most popular SD Stories of 2012: [Read more...]

Morris Hubbartt: Silver Set to Dramatically Outperform Gold

 Submitted by Morris Hubbartt:

This is a ratio chart of silver versus gold, and it suggests silver is set to dramatically outperform gold, in the intermediate term.  RSI is close to confirming the latest CCI spike, and the Stokes oscillator at the bottom of the chart is flashing a significant buy signal.
A bullish Doji candle recently occurred, just outside of the lower Bollinger band.  No technical pattern has a 100% success rate, but a Doji is highly dependable.  The silver bears are treading on thin ice here, and the bulls are looking good.

The best trade for 2013 could turn out to be buying silver now. [Read more...]

Gold Silver Ratio Clears Resistance, Hits 50/1

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.
[Read more...]