Silver: “Buy when the blood is running in the streets”

Posted by Gary Christenson - The Deviant Investor

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Gold to Silver Ratio – Sentiment

A disaster or an opportunity? Remember the admonitions:

  1. Buy when the blood is running in the streets.
  2. Buy when everyone is selling.
  3. Buy when nobody wants it.
  4. Buy low and sell high.

Consider these additional comments on current gold sentiment:

Hathaway continued: “The Ned Davis research index of gold sentiment is the lowest it’s been in 30 years of data. They have data going back to December 30, 1994. Their chart of sentiment right now is basically at zero.”

“The other thing worth mentioning is that Mark Hulbert’s gold sentiment index is now at the second-lowest level ever. Hulbert said, ‘There has only been one time in the last 30 years when the HGNSI got any lower than it is today. That came in June 2013 when it fell to minus 56. Today it’s at minus 46.9.’”

Examine the GSR for the past decade and compare the extremes in the ratio to the bottoms and tops in the price of silver.


The current GSR is approximately 70 – very high and the price of silver is at a 4.5 year low. I have circled other times when the ratio was either quite high or quite low.Those extreme readings usually marked highs or lows in the prices for silver and gold.

Other Ratios….continue reading HERE