Recent research

Recent developments in precious metals space raise series of questions in terms of sustainability of yellow and white metal moves in the foreseeable future. In order to gauge near-term precious metal moves, investors track precious metals’ relationship between currency fluctuations, stock market influence and crude oil prices. In this essay we would like to provide you with our thoughts regarding crude oil.

With pair trading it is possible to gain regardless of which of the two most popular precious metals temporarily outperforms the other one. In this essay, we observe how mean reversion works in the gold:silver ratio. We also analyze ways to identify regime changes – a key strategy when playing ratios. We will also discuss a bare and simple strategy to predict ratio fluctuations based on the fundamental indicators discussed.

The gold-silver ratio is perhaps one of the first indicators traders looked at to comprehend the state of the precious metals market and accordingly acquire positions. We attempt to revisit the gold silver ratio in a new light to arm our investors with the right view. The gold silver ratio is not outdated; the view needs to be refreshed. Over the course of this essay, we will establish the rules of mean reversion and understand how pairs and ratio work.

In this essay, we have explained the importance of analyzing correlations between the precious metals sector and other important markets.

Much has been written on crude oil's multiple uses and it's importance for all investors. In this essay we focus on the Gold / Oil ratio and what it one can infer from its recent performance.