Chart of the Day - Tuesday, September 3rd, 2019

Today’s Chart of the Day was shared on in a blog post by Chris Kimble (@KimbleCharting). It's a monthly candlestick chart of the Silver/Gold ratio going back to the early '80s. When the ratio is rising, it means Silver is outperforming Gold and vice versa. Technicians use this ratio to gauge the level of risk appetite in the Precious Metals market. Silver is the more aggressive and volatile of the two metals. Therefore, when Silver is outperforming Gold, it demonstrates risk appetitie and is a bullish signal for the broader Precious Metals market. Chris points out that this ratio has been in decline since 2011. However, it seems to be bouncing off support from the 1992 lows and is now breaking above multi-year resistance. Chris adds that if this ratio continues higher, it will send a bullish message to both Silver and Gold.