3 interesting facts of silver you need to know to make money


  1. Silver has a positive co-relation with gold and crude oil. This means usually when gold or crude oil prices move up silver tends to follow.
  2. Silver unlike gold is not just an investor’s safe haven but also an industrial commodity. Hence its price moves up if the economy is booming.
  3. Ratio between Gold and Silver prices can be 100:1 which is an extreme ratio at the higher level. At the lower level it can be even 17:1.

The essence of trading the gold-silver ratio is to switch holdings when the ratio swings to historically determined “extremes.” So, as an example:

  1. When a trader possesses one ounce of gold, and the ratio rises to an unprecedented 100, the trader would then sell his or her single gold ounce for 100 ounces of silver.
  2. When the ratio then contracted to an opposite historical “extreme” of, say, 50, the trader would then sell his or her 100 ounces for two ounces of gold.
  3. In this manner, the trader would continue to accumulate greater and greater quantities of metal, seeking “extreme” ratio numbers from which to trade and maximize his or her holdings.

Currently this ratio is 69.31:1 for 1 ounce of Gold and Silver in the spot market.

Silver going up



Silver started going up a few days back. Looking through the lens of three filters, it appeared as:

  1. Trend is up.
  2. Bouncing back from support.
  3. Favourable candle stick pattern.

So buying silver was a good idea to make some quick buck.




Shorting Copper


I have told you about the 3 filters in the page “Custom Techniques“. Now let’s see what’s going on with copper.

  1. There is a downward trend.
  2. Right now it is hitting the support.
  3. Candlesticks also show a downtrend.

However I am a bit skittish about what I see here today. I think I will wait until I find a low risk entry point for a short position. I will wait for a retracement to the resistance.

So keep an eye on copper.




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