Gold to Silver ratio tops at 82.18 on Wednesday before settling at 80.08

17 December 2021 close: The Gold to Silver ratio was very strong during the larger 2 day metals sell off which typically drives Silver volatilty higher. The recovery however in favor of Silver came in as could be expected with Silver moving faster again on its way up. The technical picture, short, medium and Monthly time interval is still leaning in the direction of a larger move, currently on pause, in favor of Silver. Quarterly is in an uptrend from a low nominal level and could hinder an early continuation, however not conclusive. Thus, the Gold/Silver ratio correction up may not be quite finished but it looks to be getting closer if not already set at last weeks top. No Change.

03 December 2021 close: Daily risk weight has turned down after the Gold to Silver ratio touching 80.20 on Thursday. It is always hard to predict where this correction will end but the super cycle scenario points towards the technical condtion of a new low being made sometime in the near or more distant future. The Weekly and Monthly time intervals show an historically weak correction upward. Like Platinum, a Silver shakeout would present with an extraordinary opportunity to buy more and not as a signal to remove the silver allocation. It is a matter of time for Silver to reach again its long term equilibrium versus Gold. The interim quarterly chart below show a pattern that does appear often and resembles most the 1990's period where silver ended the rally against gold at around a price ratio of 50 Silver ounces to one Gold ounce. We would expect this type of move to play out again in the coming few years. Hence a slight overweight silver in our metals portfolio.

Gold/Silver ratio Quarterly close risk chart

GOLD/SILVER Ratio Risk Position relative to Quarterly, Monthly, Weekly and Daily risk weight data.

(Previous update in brackets)

GOLD/SILVER Ratio Monthly Weekly Daily
80.08 (78.80)
Trend ↑ (↑) ↑ (↑) ↓ (↓)
% Risk
68 (60) 70 (45) 65 (85)
Total PM
Portfolio allocation 40% (40%)
Au:12% Ag:14% Pt:14%

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Posted in A - All Financial Blogs | 2021 Forecast, Gold to Silver ratio.

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