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April
21
2018

Silver Gold Ratio… Set To “Spring” Precious Metals Higher?
Chris Kimble

Metal heads have been very patient in 2018 as Gold continues to press up against breakout resistance.

One thing that has been missing is Silver strength… but yesterday’s big move by Silver may be the lift that precious metals need.

During bull markets for precious metals, silver tends to lead. Similar to small caps, it adds “beta” when bulls are in control.

To measure this aspect, investors can look at the ratio of Silver to Gold.  When this ratio is heading higher, its bullish. Lower is bearish.

In the chart below, I look at the last 20 years of the Silver Gold ratio. Several advances started from a critical support line at (1). As well, the ratio has formed a bullish falling wedge pattern (2) and looks to be on the cusp of breaking out of the pattern (3).

A breakout here would “spring” silver much higher, and likely carry gold with it.

Precious metals investors need to be watching this ratio here!

Silver/Gold Ratio Chart – 20 years

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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

Chris Kimble is the founder and CEO of Kimble Charting Solutions. His firm provides research for individual investors, financial professionals, 401k managers and hedge funds around the world. He specializes in pattern analysis in stock indexes, bonds, currencies, commodities and individual stocks, using pictures to highlight the opportunity at hand with a touch of humor. His mission is to help investors enlarge portfolios regardless of market direction. Chris has 33 years of experience in the financial industry. He spent 25 years as a financial planner, before turning to helping people capitalize on the Power of the pattern. With a business and psychology background he combines the footprint of pattern analysis with investor sentiment extremes to find opportunities and solutions for investors. You can read more about Chris on his website Kimble Charting Solutions http://kimblechartingsolutions.com/.
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