Gold / Silver ratio getting out of whack

As gold rises on news of tariffs it has become apparent that silver is not so enthusiastic, perhaps the fear of reduced solar panel imports is holding silver back, but either way, the gold silver ratio now sits at 81.5/1. This is really starting to get to a turning point now and with golds bullish action I would expect to see a big catch up in the price of silver. The ratio rarely remains over 80/1 for long before aggressively correcting to the downside. This might mean that a strong rally in both metals is getting very close indeed.

Looking at the wider markets, they are continuing their fall after bouncing a little during early morning trading. In my last post I noted that this was a resumption of the next major fall in global stock markets, spurred on by tariff news and whatever else is brewing behind the scenes to be revealed over the weekend. Yet again we are ending the week on a cliff hanger with everything in the balance. On Monday we might see a small bounce but it is my belief that these markets are ready to crash having completed their initial fall, followed by the dead cat bounce.

S&P:

On the positive side gold and silver look to be setting up for a major rally. Don't expect them to fall precipitously as they did during the 2008 crash so that you can grab a bargain before they bounce back. It's looking increasingly unlikely that this will occur as the dollar has it's own problems to deal with, and indeed, the next crash will likely be driven by a dollar crisis. If we do see deflation first, you might find gold to be very resilient.

Have a good weekend.

For disclosure, I'm not a professional advisor and this is not investment advice, merely my own observations of the market and indexes, so do your own research.