It has been observed that the Gold / Silver Ratio (G/SR) exceeding 80 usually correlates with stock-market downturns. (1) This analysis suggests answers to the question of 'why' for three cases where G/SR > 80 between the available data here for GLD and SLV, from 2008 to 2018. Cases:
(1) G/SR > 80 during 2008 because silver crashed harder than gold from a PM peak earlier that year.
(2) G/SR > 80 in 2016 because gold reversed from a crash more vigorously than silver.
(3) G/SR > 80 during 2017-2018 because gold and silver trends parted ways in late 2016, gold tracking a positive trend and silver a negative trend.
Indications: The evidence suggests that investors tend to buy more gold than silver after a PM crash reverses and they sell more silver after PMs crash. Together these indications simply suggest that investors are more bullish on gold than silver during the onset of a PM rise and after a PM crash. That’s no big surprise given that gold is pretty much the King of PMs, the most-famous and go-to PM.
(1) archive.is/o1cdL/85c...acf28747cce9df5b.jpg
www.seeitmarket.com/...sp-500-stocks-15576/
goldprice.org/gold-p...silver-ratio-history
(1) G/SR > 80 during 2008 because silver crashed harder than gold from a PM peak earlier that year.
(2) G/SR > 80 in 2016 because gold reversed from a crash more vigorously than silver.
(3) G/SR > 80 during 2017-2018 because gold and silver trends parted ways in late 2016, gold tracking a positive trend and silver a negative trend.
Indications: The evidence suggests that investors tend to buy more gold than silver after a PM crash reverses and they sell more silver after PMs crash. Together these indications simply suggest that investors are more bullish on gold than silver during the onset of a PM rise and after a PM crash. That’s no big surprise given that gold is pretty much the King of PMs, the most-famous and go-to PM.
(1) archive.is/o1cdL/85c...acf28747cce9df5b.jpg
www.seeitmarket.com/...sp-500-stocks-15576/
goldprice.org/gold-p...silver-ratio-history