James Turk BlogJames Turk BlogJames Turk BlogJames Turk Blog
  • Blog
  • About
    • About FGMR
    • James Turk
    • GoldMoney
  • Books
    • The Collapse of the Dollar
    • The Money Bubble
  • Contact
Next Previous

Gold/Silver Ratio bounced back up to test over-head resistance

James Turk 29 June, 2009

After the gold/silver ratio broke important support in the 68-69 area, it knifed down all the way to 61.7. The ratio has now bounced back up to test over-head resistance. I expect this test to be successful, and that the ratio will once again move lower.

Gold/Silver Ratio - 29 June 2009

Turning to the accompanying chart of the gold/silver ratio, I’ve drawn a red horizontal line at 69. I don’t expect the ratio to climb that high before turning lower, but rather, it simply marks a key level. It is important from a technical point of view for the ratio to stay below 69. If it fails to do so, the ratio is likely to climb all the way back to resistance at its 200-day moving average, currently at 72.6. This average has been moving sideways for the past week, and is about ready to turn lower if the ratio does not bounce much higher from here.

There is an important double-top in the low 80s, and resistance at that level is formidable, and probably impenetrable. So the long-term picture is one that has the ratio moving lower. That means silver will continue to outperform gold from a long-term point of view. However, we cannot only focus on the long-term.

The 200-day moving average has not yet turned lower. And the ratio has not yet corrected its drop from the low 80’s, so there is always the possibility of a bigger bounce. We simply have to stay alert for the possibility of a deeper correction.

In the near-term, which I mean to be sometime this year, we can expect the ratio to move back to the bottom of its trading range at 45. A falling ratio puts silver in a very bullish light.

James Turk

More posts by James Turk

Leave a Comment

Cancel reply

Your email address will not be published. Required fields are marked *

JAMES TURK

james_turk_blog

GOLDMONEY

GoldMoney_Inc

GET GOLDMONEY INSIGHTS

GOLD & SILVER LIVE PRICES

RECENT POSTS

  • 17 April, 2019
    0

    Heading Toward the “Tipping Point”

  • "bankruptcy 1995" revisited
    15 March, 2018
    0

    “Bankruptcy 1995” Revisited

  • 19 February, 2018
    0

    Gold’s Bull Market Enters Phase 2

FEATURED VIDEO

Categories

  • Articles
  • Briefcase
  • Gold
  • Gold News
  • Market Commentaries
  • Silver
  • Trading
  • Uncategorized

TOPICS

bitcoin bonds central banks currencies debt dollar doug casey ecb economy euro fed gold greece hyperinflation inflation markets mining stocks MMGA oil Politics QE recommended silver stock market trading Trump usd us dollar Washington

MONEY BUBBLE

the_money_bubble_james_turk

COLLAPSE OF THE DOLLAR

collapse_of_the_dollar_james_turk

ARCHIVES

  • You may also like

    Heading Toward the “Tipping Point”

    Read now
  • You may also like

    “Bankruptcy 1995” Revisited

    Read now
  • You may also like

    Gold’s Bull Market Enters Phase 2

    Read now
  • You may also like

    Positioning Yourself for a ‘New’ Bull Market in Gold

    Read now
  • You may also like

    Leveraging Gold and Silver

    Read now
  • You may also like

    Shakespeare on Finance

    Read now
  • You may also like

    Transferring Power to the People

    Read now
  • You may also like

    How Much Did It Cost to Build the Titanic

    Read now

ABOUT

FGMR My objective is to share with you my views on gold, which in recent decades has become one of the world’s most misunderstood asset classes. This low level of knowledge about gold creates a wonderful opportunity and competitive edge to everyone who truly understands gold and money.

RECENT POSTS

  • Heading Toward the “Tipping Point”

    In an article last year entitled “Bankruptcy 1995 Revisited”, I presented a

    17 April, 2019
  • "bankruptcy 1995" revisited

    “Bankruptcy 1995” Revisited

    In 1992 a book entitled “Bankruptcy 1995: The Coming Collapse of America

    15 March, 2018

RECENT TWEETS

  • This week has seen more testing of support in #silver which so far is holding. Plus backwardation today at the lows… https://t.co/w2VpDKARCX

    21 hours ago
  • The #silver uptrend is intact. Friday's downdraft broke the 1st trendline (closing prices) & then tested support at… https://t.co/EGIGmJdyLa

    5 days ago

TAGS

bitcoin bonds central banks currencies debt dollar doug casey ecb economy euro fed gold greece hyperinflation inflation markets mining stocks MMGA oil Politics QE recommended silver stock market trading Trump usd us dollar Washington
Copyright © 2001-2016 Free Gold Money Report | All Rights Reserved
  • Briefcase
  • Contact
  • FGMR
  • GoldMoney
  • James Turk
  • The Collapse of the Dollar
James Turk Blog