SILVER 0.30% $15.25 silver futures

Nobody (except me) is talking about the most dynamic and...

  1. 385 Posts.
    Nobody (except me) is talking about the most dynamic and exciting bull market in precious metals--the gold-silver ratio (GSR).

    The GSR is simply the number of ounces of silver that can be bought with an ounce of gold, ignoring buy/sell spreads and commissions.

    In less than three months between July and October last year this ratio ballooned from 50 to 88, an increase of 76%, surely the best 12-week rise in any precious metal market in recent memory.

    Like all good bull runs, it needed a rest, and since the October peak, the ratio has deflated to a low of 67 in February, and it has been trading in a sideways pattern between 67 and 74 since.

    All you need to do to make megabucks is to watch this ratio and trade it in the direction of a confirmed break of this range. Which is most likely to be up, in a new leg of a bull market that should take it to around 120.

    There is also a chance, if less likely, that it could break lower and re-test the 50 region. Never mind if it does this, it will also be an extremely profitable trade.

    Good luck
 
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