Gold versus Silver

[Pixel8r]

I wonder if the Gold:Silver ratio will follow the dollar over the next few days, through it's 50 MA. As I was saying previously, it was looking like it is 4-5 days behind.

 

 

 

[Steve Netwriter]

I must admit, don't tend to watch the gold:silver ratio. I tend to plot them against other currencies.

 

My first though when I looked at your charts was "I want to see them in 4 to 5 days time"

 

Let me think.

 

IMO while the US$ was falling against the Euro (which is mainly what the US$ Index is about), gold and silver were falling in US$. And silver being more volatile, falls more. That means the gold:silver ratio would rise.

 

When the EURUS$ turned, and the US$ started rising against the Euro, gold & silver started to rise. Again, silver being more volatile, you'd expect silver to rise faster, and so the gold:silver ratio to fall.

 

I'm not sure about the timing. I often see gold or silver move, and then maybe a minute later the currencies move. So I often spot a change and then wait for some other cross to follow soon after.

 

But, I wouldn't argue with the theory of a lag on a more macro scale. It would be nice to see them overlaid. I tried of a perf chart, but it doesn't work.

 

[Pixel8r]

It does seem to be following today, 4 days behind. We will have to see how this plays out, as it would be great to have a 4 day advantage on the GS ratio. Will be really useful in timing GM swaps.

 

I was also looking for a way to do an overlaid chart, it needs to be something like ($GOLD:$SILVER):$USD, but it doesn't work.