Below looks at the silver:gold ratio over the past 30 years. Silver AND gold bulls want to see the ratio moving higher because when it goes up, both metals follow suit.
As the ratio was hitting certain levels over the past 20 years, silver rallied at least 20% each time.
The trend in the ratio has been lower since it hit the top of a 30-year trading range back in 2011, suggesting that “buy-and-holding metals” was not the best of ideas.
Each time the ratio has hit support line (1) over the past 20 years, silver has rallied at least 20%.
To be long and strong metals, this support line needs to hold and a breakout has to take place at (3)! Historically, if support doesn’t hold, silver doesn’t rally 20%.
So it's very important to watch just what the ratio does here.