Another indicator that I am watching is the Gold to Silver ratio.
A move above 80 indicates that the ratio is “extended”. As well, moves to the high end tend to be buying opportunities for Gold and Silver.
When precious metals are in demand and “hot”, silver is like a darling tech stock (and that brings the ratio lower). When they are out of favor, Silver loses more luster and the ratio tends to move higher.
We may see this ratio peak in 2016, perhaps early 2016.
If the Gold bulls are going to make a stand and prove that Gold is a “buy” right here and now, they want to see Gold prices stay as far away from $1000 Gold as they can. The closer Gold prices get to $1000, the more likely a “mini” or “major” capitulation will occur.
Good luck and thanks for reading.
Twitter:Â @andrewnyquist
No position in any of the mentioned securities. Â 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.
