Loading ...The Gold Update by Mark Mead Baillie — 429th Edition — San Francisco — 03 February 2018 (published each Saturday) — www.deMeadville.com
“Gold/Silver Ratio Tops 80x – What Happens Next…”
Throughout this millennium, the rare instance of the Gold/Silver ratio topping 80x has always bode well for the white metal. We’ll show you.
But first, this short (pun!), swift statement on the stock market: at last Sunday’s Investors Roundtable, in suggesting that the S&P 500 had just put in its high for the year and then querying if anyone else might agree, “No no no!” they laughed. We’ll see if they show up tomorrow, (albeit one participant admitted as being “engendered with a sense of doom”).
Now: for just the fourth time (give or take some immaterial flutter) since 2001, the ratio of Gold’s price to that for Silver has just crossed above 80x. Gold settled out the week yesterday (Friday) at 1335.2 and Silver at 16.555. That puts the ratio at 80.7x. Here’s its chart, noting in red the three prior eclipses of the 80x level, and now the fourth:
What happens next? Here’s the history of the three prior occurrences looking forward six months in each case:
■ 1st – 02 June 2003: Silver settles at 4.540; within six months it settles at 5.485 (+20.8%)
■ 2nd – 17 September 2008: Silver settles at 10.52; within six months it settles at 14.420 (+37.1%)
■ 3rd – 23 February 2016: Silver settles at 15.300; within six months it settles at 20.665 (+35.1%