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Gold/Silver Ratio


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#1 mss

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Posted 10 February 2004 - 04:56 PM

The chart below is long term ratio of $Gold:$Silver and is usefull in suggesting when IT & LT trends are taking place. Remember that it is a math ratio and DOES NOT reflect the individual price as one could move faster in either direction than the other. Based on the channel, will not be long before the question of trend change will be answered.
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#2 mss

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Posted 10 February 2004 - 06:42 PM

This is the daily and gives a better view of current position. Note that the longer (black) trend line stoped the decline in the short (pink) trend line. To me this indicates strength, at least short term.
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WOMEN & CATS WILL DO AS THEY PLEASE, AND MEN & DOGS SHOULD GET USED TO THE IDEA.
A DOG ALWAYS OFFERS UNCONDITIONAL LOVE. CATS HAVE TO THINK ABOUT IT!!

#3 rono

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Posted 13 February 2004 - 08:39 AM

Howdy mss, Great charts. I've never seen them posted like this and it's illuminating pariticularly for a silver bug like myself. The 'long term' ratio was 15-20:1 and this existed for hundreds of years. However, because gold and silver were specie, I'm not sure it was a market dervived ratio. Regardless, I remember seeing the ratio pushing 80-1 and note that it's at 62-1 right now. For us geezers that were around in the late 70's, when the Hunts were dinking around, we know that gold effectively doubled to 800 or so, but silver went up tenfold. Hence, while I've been playing hell out the of the metals for several years now, both with funds and stocks, I've always been heavy into the silver side of things. And my returns on mining stocks have reflected this - check CDE and SRLM, and also SWC (platinum). I've recently gotten into copper and iron miners too, just because of industrial demand. Anyway, thanks for the great charts. rono