Kimble Charting Solutions
MAY 23, 2018
The gold/silver ratio (atypically shown here in the reverse as the silver/gold ratio) has been a very accurate buy signal for silver time and time again.
When the gold/silver ratio reaches 80 (or as displayed here in the inverse, about 0.125 as the silver/gold ratio), it has always paid off handsomely to load up on silver at those times:
Numerous times over the past 20-years the ratio has found line (1) to be support, where a rally in the ratio took place, reflecting strength in Silver over Gold.
The decline over the past few years has the ratio testing support again near the apex of a potential bullish falling wedge.