/biz/ - Business & Finance

>>19072578
100% ESH

If the momentum of the gold to silver ratio is divergent where it takes more silver to buy gold yoy, wouldn't it make sense to buy gold until reversal? Then you sell your gold, buy lots of silver, then if the ratio collapses you'll have more.

G/S ratio speculators are banking on it "correcting" to levels in the 2000s to 1980s. What if the trend continues and the G/S ratio goes up to 150 or 200? YOY you can buy less gold with your silver. If you bought more gold and the ratio spreads you can trade for much more silver. What if gold hits 3000 and silver does nothing? then if you think gold is in a bubble you switch back to silver and buy back in to gold. Judging by the momentum of the spread, from 1 to 15 to 1 to 55 to 1 to 105, to recent ATH of 120 to 1, it seems like silver is worth less and less every year and gold has been worth more and more.