Six 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...]
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...]
2012 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...]
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...]
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...]