July 22, 2020

GOLD:SILVER Trading Strategy Update

testing-5093

Forex

If you read my previous article on Silver, the GOLD:SILVER ratio has now hit 82!

I am going to keep an eye on this, it does feel like Silver is going to continue to run now. As I said if it breaks 20/21 USD, then we have broken the 4 year price cap where Silver has bounced between 13-20USD.

On the back of negative real interest rates and JP – Morgan easing up on their short positions, I think Silver is a really good investment right now.

I am leaning towards holding Silver all the way to a 1:50 Gold ratio now.

I also am waiting for a slight Silver retracement back towards 21 USD before entering my next position

Looking at the 10 year regression trend, it does look like a really good time to transfer into GOLD with my Silver position.

We are sitting at the very bottom of the 10 year regression trend at the GOLD:SILVER= 80 level.

Looking at the GOLD charts, it does look like we could push all the way up to 1920 though, this would be an ALL TIME HIGH FOR GOLD, and I would expect some resistance here. If GOLD did break 1920 though, who knows how high it could go in this NEGATIVE REAL INTEREST RATE climate.

Silver on the other hand just has so much legs to run. And I really do think based on my previous post in which you can read HERE.

That we could indeed see Silver run all the way to 29 USD.

Summary

I am going to be watching these 3 charts over the next 2 weeks and be ready to start making moves:

  1. Transfer my Silver into GOLD based
  2. Buy more Silver
  3. Buy more Silver and wait for ratio to hit 1:50 then transfer it all into Gold
  4. Transfer all Silver into GOLD and buy Gold.

Disclaimer: The above content is for educational purposes only and is NOT investment advice. All investments involve risk and therefore we recommend you do your own research.

Written by William Wright from www.miningstore.com.au

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