Last week, investors in the Reddit group WallStreetBets drove up the prices of shares in heavily-shorted companies, notably GameStop, forcing hedge funds to cover their shorts by selling big long bets. Now, the next retail interest is Silver, because just like GameStop and the other private equities, Silver is heavily shorted by the banks and the real price is held back by these large institutions.
The gold-silver ratio, which describes the relationship between the two metals' prices, historically converges near an average of 60, meaning that the price of Gold is often around 60 times higher than silver.
So in terms of cryptocurrencies, the gold/silver ratio is most similar to the likes of something of the ETH/BTC ratio.
What does this mean for the price of Silver?
Well the price of Gold right now is just under a Spot price of $1900, and you divide that number by 60 and get something around the likes of $31. This $31 level and a $30+ silver has not been seen since early 2013. Silver has a good chance of hitting the TP3 level placed at the distribution zone of $34.610 - $35.35 as this level is the start of the downtrend and created a 7-year long valley. The breakout point of Silver to the TP4 level at $47 can only be hit if we see a TP3 close first.
This is a long term chart looking at the 2-week, don't expect this to play out right away. Hopefully I can look back at this chart at the end of the year and see how this played out. Here is to a profitable 2021 🥂
The gold-silver ratio, which describes the relationship between the two metals' prices, historically converges near an average of 60, meaning that the price of Gold is often around 60 times higher than silver.
So in terms of cryptocurrencies, the gold/silver ratio is most similar to the likes of something of the ETH/BTC ratio.
What does this mean for the price of Silver?
Well the price of Gold right now is just under a Spot price of $1900, and you divide that number by 60 and get something around the likes of $31. This $31 level and a $30+ silver has not been seen since early 2013. Silver has a good chance of hitting the TP3 level placed at the distribution zone of $34.610 - $35.35 as this level is the start of the downtrend and created a 7-year long valley. The breakout point of Silver to the TP4 level at $47 can only be hit if we see a TP3 close first.
This is a long term chart looking at the 2-week, don't expect this to play out right away. Hopefully I can look back at this chart at the end of the year and see how this played out. Here is to a profitable 2021 🥂