Saturday, December 9, 2017

While money and volatility were seeking the cryptocurrency markets late last week, slamdowns in gold and silver take ratio to whopping 80:1

In the alternative markets it was a tale of two securities last week as in one market a massive amount of buying led to extreme volatility in the price while on the other side of the ledger the dumping of gold and silver contracts pushed the metals out of their long-standing range and below their 200 day moving averages.

Bitcoin trading saw the price of the cryptocurrency skyrocket from $11,600 on Dec. 6 to over $19,000 in a few foreign exchanges.  Then by the end of trading on Friday the price had fallen back below $14,000, to an average close throughout the exchanges of around $15,000 per coin.

However while gold was definitely slammed down by continuous selling and shorting between Dec. 6 and 8, it was silver that saw the largest drop in price, so much in fact that at one time during the day the gold to silver ratio hit a whopping 80:1.

To anybody who’s a contrarian or a value investor, silver is desperately trying to tell you something…  The gold to silver ratio shot above 80 yesterday: 
Moves like we have seen over the last month have broken the sideways channel we were in since this summer. The difference now, however, is that since late November, the move has been more than 8.5%. 
Anybody who uses the gold to silver ratio as a factor in deciding which metal to purchase would be favoring silver right now. – Silver Doctors

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