IN THE NAME OF ALLAH THE MOST GRACIOUS THE MOST MERCIFUL
GOLD TO SILVER RATIO IS SIMPLY THE AMOUNT OF SILVER TO PURCHASE ONE OUNCE OF GOLD, THE PREDOMINANT RANGE FOR THE RATIO IN MODERN TIMES IS RATHER WELL BETWEEN 40AND 80, GOLD HAS NOWADYS MUCH HIGHER MONETRY DEMAND COMPARED TO SILVER THAN IN THE PAST, WHICH LARGELY EXPLAIN THE AVERAGE RATIO IN THE 21ST CENTURY WAS ON AVERAGE HIGHER THAN EALIER
CHART 1:- SHOWS GOLD/ SILVER RATIO SINCE 1693, THE HISTORICAL RECORD HIGH WAS ROUGHLY 100, OUR ELLIOTT ANALYSIS IS LIKELY THE RATIO COMPLETED 3 WAVES ON GRAND SUPERCYCLE DEGREE, FOURTH WAVE IS STILL UNFOLDING INTO FLAT THAT COULD MAKE A NEW LOW BLOW 31 OR AS A TRAINGLE THAT MAKES AN ASCENDING LOWS ABOVE 31, SO THE DECLINE FROM LAST NEW ALL TIME HIGH AT 125 SO FAR AS SHOWN IN CHART 2, IS WORKING ON AN IMPLUSIVE MANNER ON MINOR DEGREE AS WAVE 1 OR A , WICH FOLLOWED BY 3 WAVES UP AS A COUNTER TREND AS WAVE 2 OR B THAT COULD HIT AT LEAST 85 OR EVEN MORE
HOW CAN PRECIOUS METALS INVESTORS USE THE GOLD/SILVER RATIO IN INVEVESTING
WHEN THE RATIO MOVES TO EXTREMES(ABOVE 80 OR BELOW 40) IT CREATES A GOLD AND SILVER TRADING OPPORTUNITY FOR IVESTORS, WHEN THE RATIO IS LOW LIKE NOWADYAS IT INDICATES THAT SILVER MAY BE OVERVALUED OR INDICATES THAT SILVER WAS RISING FASTER THAN GOLD
HOWEVER, ANOTHER IDEA WOULD BE TO VIEW EXTERMES IN THE RATIO AS TURING POINTS IN THE ENTIRE PRECIOUS METALS SECTOR,BUT NOBODY KNOWS FOR SURE THE TURING POINTS WHEN INVESTORS SHOULD SWICH BETWEEN THE PRECIOUS METALS, THE RATIO MAY HIT 80 OR 40 AND CONTINUE TO EXPAND OR DIVE FOR A WHILE AS THE FUNDAMENTALS MAY CHANGE JUSTIFYING A NEW RANGE FOR THE RATIO, NOTICE , DESPITE THE RECENT DECLINE THE RATIO IS STILL AT REALTIVELY ELEVATED LEVEL, SO THE EXPECTED REBOUND AS I STATED ABOVE , WE CAN SEE GOLD OUTPERFORM SILVER, USUALLY GOLD LEADS THE DANCE AND SILVER FOLLOWS
IT IS IMPORTANT TO REALIZE THAT THE GOLD TO SILVER RATIO MAY SIGNAL A TREND IN BOTH METALS, IF THE RATIO IS HIGH(ABOVE 80) INVESTORS POTENTIALLY INCREASE THEIR POSITION IN SILVER REALTIVE TO GOLD BUT THEY DO NOT HAVE TO ACTUALLY SELL GOLD. THE PRICE OF GOLD IN SILVER OUNCE IS LIKELY TO DECLINE BUT IT DOES NOT MEAN THAT THE US DOLLAR PRICE OF GOLD IS ALSO GOING TO DROP, ACTUALLY THE ABSOLUTE PRICE OF GOLD INCREASE TOO,ALTHOUGH AT A SLOWER PACE THAN SILVER. AS WE HAVE SEEN BOUNCING OF MARCH LOWS IN BOTH METALS. ALSO I WOULD LIKE TO POINT TO, THAT THE PEAK IN THE RATIO MAY ALSO INDICATE A RECESSION( JUST LIKE IN 2008,AND 2020) OR AT LEAST AN IMPORTANT ECONONMIC SLODOWN
