Silver – More Evidence of a Price Bottom

That ratio has a long history of volatility.  The ratio is high when silver prices are low and as silver prices push higher, the ratio drops.  Note the graph of the gold to silver ratio using weekly data for ten years.

The red line shows the ratio, currently second highest in 12 years.  The purple lines show trend line support for the ratio, which when broken, indicate a new move upward in silver prices.  The black line shows silver prices.

Perhaps more useful is the same data but plotted as the silver to gold ratio.  The ratio and the price of silver correlate well.  Purple lines indicate trend line resistance.  The dashed green arrow is my estimate of future price direction for silver.