Silver / Gold ratio at 83/1 – Extreme levels

Silver is being smashed at the time of writing with gold showing some resilience. However, this has pushed the Silver / Gold ratio to 83/1. This is extreme by any measure over the last 25 years.

You can read my post on a detailed analysis of the GS ratio here:
https://steemit.com/gold/@unclehermit/gold-silver-ratio-detailed-analysis

It certainly looks like the ratio is getting toppy and ready for a major reversal. The more out of whack a price gets, the more extreme will be the reversal. Only in the early 1990's did the ratio spike up to 100/1 and stay above 80/1 for a few years. The early 1990's were very different fundamentally from today. There were no major geopolitical crises, global debt levels were not extreme and gold and silver production were not peaking with high demand coming from the east.

All of this suggests to me that the gold / silver ratio is about to crash in a big way. The crash may not be imminent and we may have to wait a little while yet, but every day that goes by is putting more upward pressure on the metals.

image source: pixabay