Silver the Key to a Sustainable Rally in Gold
By GCRU Gold News on Wednesday, February 8 2017, 01:02 - Permalink
This is one of the critical factors that must turn to signal a real bull run is coming. We did elect a Weekly Bullish in silver on Friday but not gold. However, we did get a Minor Monthly Bullish at the close of 2016 both in gold and silver. For a real bull market, we need the silver/gold ratio to break 60:1. It is currently in the 69:1 range. Here is a chart with 200 years of data for this ratio. A bull market requires BOTH metals to rally. Gold may have more trouble since it is being tracked by all governments. You cannot mail it outside the country nor jump on a plane with 10 ounces. Silver may become more viable if the world actually moves to electronic currency. So this ratio should start to come in after 2017.