Sunday, February 16, 2014

Gold-Silver Ratio ALERT!

Blog Title: Gold-Silver Ratio ALERT! (Quick market view)

Hello All,

There is something VERY important happening at the moment.
First look at the chart:


 






I brought this chart up sometime in 2013.  I believe it is a very critical chart to view if you are like many out there who MUST hold gold.  In my previous post I pontificated how by utilizing a ratio chart of Gold and Silver you could alternate your holdings between Silver and Gold depending on the time frame of which one will out perform the other.  An important milestone is again happening on this chart.

Look at the green trend lines.  This is the ratio climbing where gold is increasingly becoming more and more expensive in relation to Silver.  At some points in history it will have a 'breakdown' these breakdowns are HIGHLY lucrative.  For example, just view the point where the ratio hit the downtrend red line recently at the end of January 2014.  If one was to take this as a trading signal you would find that even between then and now (only 2 weeks) Gold made a 6.5% increase WHEREAS SILVER WAS 12.2%!

At the high areas I have mentioned before this is where you would want to sell your holdings in Gold and buy Silver.  Now that we are at this important milestone where the ratio is about to BREAKDOWN then the average increase is 30-35% in Silver.

This is a MAJOR and obvious market move with HIGH probabilities.

I will monitor the action as it progresses, but I would assume this move will continue until the 50 mark (on the chart) which may progress until August 2014.

Protect yourselves,
Lee MacFarlane
Derivatives Trader - President
Kinship Investments Ltd.
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Past performance is not necessarily indicative of future trading results.
Lee MacFalane is a derivatives trader trained under the Canadian Securities Institute and is working toward his CMT designation under sponsors with the CSTA (www.csta.org). He manages Kinship Investments, a Private Managed Fund (working under the Capital Raising Exception Act of the BCSC). Kinship Investments is not an advisory service and does not provide investment advice. This blog represents Lee MacFarlane's opinions only and is not intended to be used as investment advice. Lee MacFarlane and Kinship Investments may or may not hold securities that are discussed in this blog. Please contact lee@kinshipinvestments.com for further information or go to www.kinshipinvestments.com/trustfund.html to view our latest results.