Trading the Gold/Silver Ratio
The gold/silver ratio = price of gold divided by the price of silver. Here is how to use the ratio to spot opportunities in the precious metals market.
The gold/silver ratio = price of gold divided by the price of silver. Here is how to use the ratio to spot opportunities in the precious metals market.
Economic crashes begin with artificially low interest rates and credit expansion which lead to a misallocation of resources, inevitably culminating in a recession.
Gold has risen 6% in less than a week, achieving an all-time high.
Low credit spreads and surges in “extreme greed” often reflect a fervor which disregards proper risk assessment.
Watch the replay: David McAlvany, CEO of Vaulted, discusses the 2024 economic outlook and strategies for investors.
Gold hit $2,146/oz on Monday, exceeding its previous all-time high by $65.
Prior to 1971, the US dollar was backed by gold. Today, the dollar is backed by 2 things: the government’s ability to generate revenues (via debt or taxes), and its authority to compel economic participants to transact in dollars.
Monetary tightening has created difficulties for the US and foreign governments in managing debt. As these issues persist, gold's role as a hedge against monetary instability and geopolitical unrest becomes increasingly important.
Markets dropped and yields rose amid concerns over the US debt maturity. The gold/silver ratio is providing an excellent entry point for silver.
The drastic increase in debt defaults show that rate hikes are starting to bite. The “free money” measures during COVID-19 seem to have delayed, not solved, the problem.
Indian wedding season, Christmas, Chinese Lunar New Year, and other seasonal patterns can significantly impact the price of gold.
Should investors own gold to capitalize on price increases, or hedge against the incoming recession? The answer may depend on monetary policy.
History, economic theory, and empirical evidence: three arguments supporting gold as the purest form of money.
After surging for a year and a half, real yields may be approaching a ceiling. If so, gold is primed for a strong resurgence.
Silver is often associated with “second place.” But don’t be fooled: silver is a remarkable metal that often plays a much greater role in our everyday lives than its glamorous yellow counterpart.
Assets and industries traditionally considered “safe havens” are rapidly losing their luster in our high interest rate environment. Precious metals could soon be the last bastion of safety.