May as well give Gold a mention, since these guys usually move together, and the Gold:Silver ratio is something to keep an eye on.
G:S R has been and still is spending a lot of time around 80.
Historically, this is rather high.
i.e. Silver should be priced higher compared to gold.
Of course you could also say Gold should be priced lower compared to Silver, but am I gonna say that?
Hell no.
Time to revisit my favourite reference / reality check for pricing gold...
The Bread Indicator.
For the uninitiated, this is a historical measure going back over 2000 years, which amazingly enough... still works.
1 ounce gold = 350 (1kg) loaves of bread.
Currently, using this cost of living price
https://www.numbeo.com/cost-of-living/country_result.jsp?country=United+States500gm loaf = $3.57
So X 700 = $2500
Gold right now is ~$2400
However, I think that since gold has been sitting around 10% lower than this measure, it could well go 10% higher.
Which would be ~$2750.
Which happens to be right in the target range of the upside breakout from the massive long term Cup & Handle pattern we all love to look at.
At that point, it would also be reasonable to get the G:S Ratio down to 60 or so.
2750 ÷ 60 = $45 +
Just a li'l something to work with.
