Hello everyone,
This is my first post on trading view, so pardon if I break any protocols of writing. Do drop in constructive suggestions on both the analysis and writing. I love the feedback based improvement process.
So cutting right to the chase, I have been observing the Gold to Silver Price ratio. A fall in the ratio has often led to an upswing in silver prices.
The chart inserted above is just to display the relationship. it is XAUUSD/SILVER.
Some observations:
There is a bearish trend emerging for the ratio
If we apply the 100 week linear regression bands here are the observation:
On a weekly basis, the trend is clearly downward:
The angle of the slop seems fair (based on observation that steep slopes tend to break quicker)
While the price is in a fair band, not at an extreme based on standard deviation.
We are also trading below 100 DMA.
While these are just a few data points, there is a general weakness in ratio being observed even on daily and monthly charts. Momentum has not picked up as of now.
If we look at the uses of silver, they are used quite extensively in the renewables space:
Solar panels use silver as they are excellent conductors and while they have been used extensively in fuel based vehicles, they have found strong usage in the EV segment as well.
Is silver in a new upcycle? let me know your thoughts below
This is my first post on trading view, so pardon if I break any protocols of writing. Do drop in constructive suggestions on both the analysis and writing. I love the feedback based improvement process.
So cutting right to the chase, I have been observing the Gold to Silver Price ratio. A fall in the ratio has often led to an upswing in silver prices.
The chart inserted above is just to display the relationship. it is XAUUSD/SILVER.
Some observations:
There is a bearish trend emerging for the ratio
If we apply the 100 week linear regression bands here are the observation:
On a weekly basis, the trend is clearly downward:
The angle of the slop seems fair (based on observation that steep slopes tend to break quicker)
While the price is in a fair band, not at an extreme based on standard deviation.
We are also trading below 100 DMA.
While these are just a few data points, there is a general weakness in ratio being observed even on daily and monthly charts. Momentum has not picked up as of now.
If we look at the uses of silver, they are used quite extensively in the renewables space:
Solar panels use silver as they are excellent conductors and while they have been used extensively in fuel based vehicles, they have found strong usage in the EV segment as well.
Is silver in a new upcycle? let me know your thoughts below