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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: TobagoJack who wrote (218482)12/15/2025 1:58:09 PM
From: Box-By-The-Riviera™  Read Replies (7) | Respond to of 218558
 


The Gold-to-Silver Ratio's Coming Compression: Why 70:1 is About to Collapse to 30:1 or lower!


The gold-to-silver ratio (GSR) is one of the the most important charts in precious metals today. It is a measure of how many ounces of silver it takes to buy one ounce of gold. And it is a chart that is about to break down in a spectacular fashion, sending the price of silver to levels that are unimaginable today.

For decades, the GSR has been a reliable indicator of the health of the precious metals market. When the ratio is high, it means that silver is undervalued relative to gold. When the ratio is low, it means that silver is overvalued relative to gold.

Today, the GSR is trading at around 70:1. Despite the drop in the last few weeks, this is a historically high level, and it is a level that is almost certain to be not sustainable.

The historical average for the GSR is around 50:1. And in past precious metals bull markets, the ratio has fallen to as low as 15:1.

We are on the verge of another one of those moments. The GSR is poised to collapse, and it is a collapse that will be driven by a perfect storm of factors, including:

  • a massive industrial demand tsunami

  • a historic supply deficit

  • a global monetary reset led by the BRICS nations

  • a technical breakdown of a multi-decade chart pattern

  • and the violent correction of a 50-year lag that has left silver trading at less than a third of its inflation-adjusted high.

This is not just a bull market; it is a re-rating of historic proportions.

The Historical Context: A Tale of Two Bull MarketsTo understand the magnitude of the opportunity in front of us, we must look to history. The Gold-to-Silver Ratio is not just a number; it is a historical narrative of fear, greed, and the cyclical transfer of wealth.

The past is prologue, and the last two major precious metals bull markets provide a chillingly clear roadmap for what is about to unfold. The data below is not just a collection of prices; it is a warning and a prophecy of the violence with which the GSR collapses at the peak of a bull market.


As you can see, in both 1980 and 2011, the GSR collapsed as the precious metals bull market reached its climax. In 1980, the ratio fell to a low of ~17:1. In 2011, it fell to a low of ~38:1.

Today, with gold at $4,343/oz and silver at $62.33/oz, the GSR is trading around ~70:1.


If today were the top of the bull market, and the GSR were to fall to the 2011 level of ~38:1, silver would be trading at $114/oz. If the GSR were to fall to the 1980 level of ~17:1, silver would be trading at $255/oz.

But we are nowhere near the top of this bull market. In fact, we are just getting started as silver only broke out above its previous all-time nominal high just last month.

Let’s Dig Into The Following:
  1. The current technical setup is particularly compelling. The GSR is testing the lower boundary of a decades-long descending wedge. A break below this support level would trigger a cascade of technical selling, sending the ratio plummeting toward the 30:1 level or lower. This is not just fundamental analysis; this is technical confirmation of what the fundamentals are already telling us!

  2. The industrial demand tsunami, combined with the 5+ year supply deficit and the draining of the above ground supply inventories is setting the stage for the world to run out of silver. The market has not yet priced in this reality!

  3. One of the most important lessons from precious metals history is that silver dramatically outperforms gold in the final, parabolic phase of bull markets. This is not a coincidence; it is an inevitability driven by silver’s dual nature as both an industrial metal and a monetary metal. This is still to come.

  4. As the world de-dollarizes, as nations seek to reduce their dependence on the U.S. financial system, they will turn to the only assets that are truly neutral, truly global, and truly outside the control of any single government: gold and silver.

    This is not just about investment demand; this is about the re-monetization of silver on a global scale. And when that happens, the GSR will collapse.

  5. When the paper market breaks, when the physical reality of the supply deficit and the industrial demand tsunami finally asserts itself, the price of silver will not just rise; it will explode. It will move with a speed and a ferocity that will shock even the most bullish of investors. And it will not stop until it has surpassed its inflation-adjusted high of $196 and found a new equilibrium at a level that reflects its true scarcity and its indispensable role in the 21st-century economy.

    This is the opportunity that is staring us in the face!

So, let’s go…...