Been watching precious metals for a while now and the gold to silver ratio keeps fluctuating.
What ratio do you guys typically wait for before making a move? I’ve seen some people say 80:1 is good for silver but wondering what actual traders are doing.
Silver is good at 85 or more.
I usually watch for ratios above 80 but don’t get too hung up on hitting exact numbers.
The market can stay at high ratios longer than you expect so I prefer to average in when it gets above 75 rather than waiting for perfect entry points.
Keep position sizes reasonable since precious metals can be volatile even when the ratio looks favorable.
Look for a ratio above 80 to consider silver. Historically, the average is around 60-70. When it hits 90 or higher, it signals a good buying opportunity. I like to start with small positions at 85 and scale up above 90. The ratio can spike during market stress. Keep an eye on industrial demand cycles as silver is affected more by economic slowdowns than gold, despite the ratio.
90:1 ratio is pretty extreme but could mean silver gets oversold. I’d watch this video about the current situation.
Don’t go all in at once though.