Saturday, May 7, 2011

Silver to Gold Ratio Chart Update

After rising sharply in terms of gold, the silver to gold ratio has dropped sharply during the CME raid on Silver as they hiked margin levels repeatedly.  The Silver to Gold ratio is coming down to support levels and has possibly already reached its low. 

Look at this chart and note how swiftly the ratio corrected and how it has bounced off of the first support area.  If this area fails, there is much stronger support just a little bit lower.

Remember, annual silver production is roughly nine times more than annual gold production.   I am betting that this is just a correction and once it is tested, the silver to gold ratio will continue higher from hear after consolidating.