Gold-silver ratio dropped from 107 to current 91. What does this mean? Does it indicate that silver is about to trend higher, or is it a sign that gold will continue its trend?
If you take the gold prices on 'Liberation Day' on 2nd April 2025 - Gold at $3,509 divided by Silver at $35 = 100.25
Today, the gold prices at 3,400 divided by the silver prices at 37.36, you will get the ratio as 91.
Based on this historical development over the last 50 years, gold silver spread has range bound within this range of 40 and 100, and likely it should remain this way.
Studies shown it has just reached 100, forming a potential inverted hammer, and could be on the way down to its lower band. Either the 65 band or 40 band.
If that were to happen, this also means the Silver’s trend is likely to pick-up faster than gold did.
On 05 April 2024 a video analysis I have published, title “Silver is Next to Rally After Gold”, then I presented on its fundamental and its technical reasons.
By the way the cup & handle formation, it is taking a very good shape today.
On that analysis, I suggested in time to come, when Silver to catch-up with gold, it will be fast and furious. And I believe the time is near as the ratio now dip to around 91, and it seems more room for more downside.
This means with so many uncertainties and fear of inflation coming back again, Gold may still trend higher, but this time the rate-of-change for the silver to move higher is faster than that of gold. If the ratio continue to decline, we should see a much firmer silver prices from the current.
Historically, gold and silver have been used as money, and even today, if you take any grams or an ounce of gold or silver to banks with bullion departments, you can exchange it for cash.
As the world searches for the next reserve currency, precious metals have become a safe haven. That’s why gold has been trending upward over the years, especially when inflation hit a high of 9% in 2022. When gold becomes too pricey, investors often look for alternatives like silver. This also explains why, during most financial crises, the gold-silver ratio dips, indicating that silver is catching up with gold.
Micro Silver Futures
Ticker: SIL
Minimum fluctuation:
0.005 per troy ounce = $5.00
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs tradingview.com/cme/
Trading the Micro: cmegroup.com/markets/microsuite.html
cmegroup.com/markets/equities/spot-quoted-futures.html
If you take the gold prices on 'Liberation Day' on 2nd April 2025 - Gold at $3,509 divided by Silver at $35 = 100.25
Today, the gold prices at 3,400 divided by the silver prices at 37.36, you will get the ratio as 91.
Based on this historical development over the last 50 years, gold silver spread has range bound within this range of 40 and 100, and likely it should remain this way.
Studies shown it has just reached 100, forming a potential inverted hammer, and could be on the way down to its lower band. Either the 65 band or 40 band.
If that were to happen, this also means the Silver’s trend is likely to pick-up faster than gold did.
On 05 April 2024 a video analysis I have published, title “Silver is Next to Rally After Gold”, then I presented on its fundamental and its technical reasons.
By the way the cup & handle formation, it is taking a very good shape today.
On that analysis, I suggested in time to come, when Silver to catch-up with gold, it will be fast and furious. And I believe the time is near as the ratio now dip to around 91, and it seems more room for more downside.
This means with so many uncertainties and fear of inflation coming back again, Gold may still trend higher, but this time the rate-of-change for the silver to move higher is faster than that of gold. If the ratio continue to decline, we should see a much firmer silver prices from the current.
Historically, gold and silver have been used as money, and even today, if you take any grams or an ounce of gold or silver to banks with bullion departments, you can exchange it for cash.
As the world searches for the next reserve currency, precious metals have become a safe haven. That’s why gold has been trending upward over the years, especially when inflation hit a high of 9% in 2022. When gold becomes too pricey, investors often look for alternatives like silver. This also explains why, during most financial crises, the gold-silver ratio dips, indicating that silver is catching up with gold.
Micro Silver Futures
Ticker: SIL
Minimum fluctuation:
0.005 per troy ounce = $5.00
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs tradingview.com/cme/
Trading the Micro: cmegroup.com/markets/microsuite.html
cmegroup.com/markets/equities/spot-quoted-futures.html
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