It is breaking support and heading lower. If this holds, it
means both gold and silver are going up, and silver will go up
faster than gold. Probably after a re-test of the broken support
(now resistance).
On the other hand (here comes my disclaimer
) if this is a false breakdown, then
the ratio should reverse sharply and both gold and silver will go
down, while silver will correct faster.
THE sooner you understand why its important and in what form to
own these metals the better....the sooner you try to trade it on a
daily basis...as like fx=foreign curemcies....unless you really
understand as a seasoned pro....don't...it will save time for
arguments...believe me you have no idea what transpires inter bank
sometimes...and makes all lok like silly wilys..
Thanks for the explanation, Mamaduck. I'm unusually slow
on the uptake with this one. Guess i just haven't followed
the ratios of GLD to SLV to get the pattern. I am having
a hard time understanding why a break in support of the RATIO would
imply both are headed up , and SLV faster ( I AM aware that SLV has
been moving faster in both directions). Thanks again.
I'll keep watching.
I am heavily invested in metals at present, and would like to
figure this out eventually, so that I get the concept. If
anybody else has a 2x4 to hit me between the eyes with to clarify,
please take a shot!
If the recent distribution selling in silver & gold by large
funds/speculators is done or near done and they start
ramping up long contracts again, there could be significant
fuel for a metals rally -- especially because they're so far from
their usual correlation with price at this point.
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Gold and Silver
Silver Strong
Posted by mamaduck on 8th of Feb 2011 at 12:15 pm
Too early to tell, but this might be the real thing...
Mamaduck
Posted by mdgfain on 8th of Feb 2011 at 03:12 pm
Just to be sure I understand, the chart would imply that it is time to favor gold rather thatn silver? Thanks.
Guy
Gld:SLV ratio charts
Posted by mamaduck on 8th of Feb 2011 at 03:18 pm
It is breaking support and heading lower. If this holds, it means both gold and silver are going up, and silver will go up faster than gold. Probably after a re-test of the broken support (now resistance).
On the other hand (here comes my disclaimer
) if this is a false breakdown, then
the ratio should reverse sharply and both gold and silver will go
down, while silver will correct faster.
Here is an updated chart.
Hi Mamaduck, The fact that silver
Posted by lastchance on 8th of Feb 2011 at 06:40 pm
Hi Mamaduck,
The fact that silver closed around it's highs would have to give your disclaimer less credence, don't you think?
GOLD N SILVER
Posted by fixdgear on 8th of Feb 2011 at 06:44 pm
THE sooner you understand why its important and in what form to own these metals the better....the sooner you try to trade it on a daily basis...as like fx=foreign curemcies....unless you really understand as a seasoned pro....don't...it will save time for arguments...believe me you have no idea what transpires inter bank sometimes...and makes all lok like silly wilys..
Thanks
Posted by mdgfain on 8th of Feb 2011 at 03:31 pm
Thanks for the explanation, Mamaduck. I'm unusually slow on the uptake with this one. Guess i just haven't followed the ratios of GLD to SLV to get the pattern. I am having a hard time understanding why a break in support of the RATIO would imply both are headed up , and SLV faster ( I AM aware that SLV has been moving faster in both directions). Thanks again. I'll keep watching.
I am heavily invested in metals at present, and would like to figure this out eventually, so that I get the concept. If anybody else has a 2x4 to hit me between the eyes with to clarify, please take a shot!
Guy
Follow-up on COT data
Posted by lessarda on 8th of Feb 2011 at 12:22 pm
If the recent distribution selling in silver & gold by large funds/speculators is done or near done and they start ramping up long contracts again, there could be significant fuel for a metals rally -- especially because they're so far from their usual correlation with price at this point.