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Get ready! Every time the gold:silver ratio has reached a level of around 82, it has led to major rallies in the silver market.
By Lorimer Wilson, editor of munKNEE.com
- In mid-2003 the gold:silver ratio peaked at 82:1 and over the next 5 years, silver went up 320% from approx. $5/ozt to $20.78/ozt.
- At the end of 2008 the gold; silver ratio again peaked above 82:1 and, over the next 2 years, silver went up 453% from $8.79/ozt. to $48.60/ozt.
- In early 2016 the gold;silver ratio again topped 82:1 (@83:1) and, over the next year, silver went up 52% from $13.65/ozt. to $20.70/ozt.
With silver currently at $16.20/ozt then, from a historical perspective, it is reasonable to expect that silver might well explode from here to maybe $25/ozt. (i.e. +52%), or perhaps to $68/ozt. (+320%) or even as high as $90/ozt. (+453%)!
As Victor Dergunov says in an article on this very subject: “The Fed is pivoting towards expanding the monetary base substantially, and will likely need to implement significant monetary stimulus to delay, and ultimately get the economy through, the impending recession [and] none of this seems to be priced into the silver market right now…That is exactly why silver is likely to go much higher from here over the next few years.”
I am convinced that silver will soon explode in price in a manner of unprecedented proportions, both in terms of previous silver rallies and relative to all other commodities. By unprecedented, I mean that the price of silver will move suddenly and shockingly higher in a manner never witnessed previously, including the great price run ups in 1980 and 2011. The highest prior price level of $50 will quickly be exceeded.
Silver prices have risen exponentially for the past 90 years as the dollar has been consistently devalued. Expect continued silver price rises.
One of the most incredible trade setups you’ll ever see in Silver is just weeks or months from initiating the next upside price leg and we are alerting you now to be prepared.
Buying silver now is like buying silver back in 2003 when it was under $5 per troy ounce. It’s the bargain of the century!
Silver is now rarer than gold and will be for all of eternity. From this point forth we work from current silver production alone and, from this point forth, demand will outstrip production without exception. Can you imagine what that means for the future price of this, indeed, precious metal? Forget about the popular expression: ‘Got gold?’ The much more important – and potentially more profitable – question to ask these days is, ‘Got silver?
Silver is currently greatly undervalued relative to its average long-term historical relationship with gold and, as such, it is realistic to expect that silver will eventually escalate dramatically in price. How much? This article applies the historical gold:silver ratios to come up with a range of prices based on specific price levels for gold being reached.
This market looks gorgeous, and has lots of upside potential in 2019.
Almost every one of the precious metals has some sort of explosive feeling and that is especially so with the price of silver. Let me explain why that is the case.
Silver has been in a descending triangle over the past 8 years but looks to be nearing completion. This suggests a large move in Silver is near.
A collapse of the U.S. dollar is inevitable. The U.S. Dollar Index has been bouncing off of four-year lows for the past several weeks but this cannot last much longer with a global trade war and U.S. equity correction looming….The U.S. dollar and fiat currencies are in trouble, hinting that gold and silver prices could again go screaming higher…[as] the two still generally trade inverse to each other and, while gold is perhaps the safest way to hedge against a falling dollar, the most profitable option is silver.
The graphs below show that silver prices are too low based on five decades of history and via comparisons to national debt, the S&P 500 Index and gold. Expect silver prices to rise far higher in coming years as the over-leveraged financial system resets and rebalances.
Talk about having an opportunity handed to you on a silver platter! Whether it’s buying shares of SLV or purchasing physical bullion, there really isn’t much of a downside at this point. If you haven’t staked your claim, now’s a good time to do it.
It’s natural and even prudent for an investor to wonder if a particular asset is a good investment or not and that’s especially true for silver, since it’s such a small market and doesn’t carry the same gravitas as gold. At this point in history, however, there are 10 compelling reasons to add physical silver to your portfolio.
I believe there is more opportunity in the silver market over the next two years relative to gold and, as such I’m now advocating accumulating a large overweight position in silver relative to gold because, over the long-term, there is such a great demand vs. supply situation developing….Before investing in silver, however, there are a number very important things that you must understand about the silver market. Let me explain. Words: 899
It is time to assess risk versus reward and buy silver with currency units recycled from other assets.
The fiat currency experiment will end badly in a currency crisis. The wealthiest people will be those who bought silver today and were smart enough to research and pick the best silver mining stocks.
Silver has often rebounded nearly 100% within 12-15 months after bad and long bear markets. History says Silver is ripe for a similar move over the next 12 to 18 months.
Crafting such a bold title could become hazardous to my reputation since I am a conservative person. However, before you dust off the straight-jacket and have me committed, please take a few moments and consider the possibility.
If the price of silver were based directly on the real physical silver market, silver’s price should be at $5,000 an ounce. I’m not saying the price of silver will reach $5,000 an ounce; I’m just saying that the actual PHYSICAL silver spot price is not only extremely undervalued, but that it is an illusion compared to the real value of an ounce of physical silver, since it is totally disconnected from reality. [Let me explain further.]
$200 or $400 silver is outrageous when we think in terms of today’s dollars, euros, and yen but what if…
The global financial system is increasingly unstable and fragile, even more so than in 2008. The important question these days is: How will governments, central banks and financial systems respond to the ongoing crisis? Future prices for silver are dependent upon the answer to that question. I suggest three possible scenarios.
Gold and silver generally move in sync with each other and tend to move in the same direction. The relationship is such that there’s even an indicator that measures it – the gold/silver ratio. Many investors use the ratio to spot extremes in the pricing of either precious metal, and to spot trends, whether up or down. The ratio currently sits at approx. 80:1 and suggests that silver has some catching up to do.
The 70s pattern for silver is very similar to the pattern that currently exists. Therefore, I do not think it is wishful thinking that silver will reach the target of $675 as a minimum. Now, you have an opportunity to go back in time to 1978, without a “time-machine,” and make a similar but bigger gain.
If you’re a speculator in precious metals, now may be a good time to consider trading in some gold for silver. Here’s why.
The price of silver is going to go much, much higher – much higher – over the next decade relative to gold. Below are 5 solid reasons why I believe that is the case.
Spectacular bull markets in silver are not a fantasy and are not anomalies. In the last 35 years, silver has had a perfect record of strong bull markets after a bear market. A 350% gain is what can be expected once silver finds a bottom. Here’s why.
The supply of silver went down in 2015 due to lower scrap supply and I believe silver production from mines will not rise significantly in 2016 so supply will be subdued going forward. Demand however will keep going up. [IMO if you start] stacking silver you’ll be rich in exactly 5 years.
The current silver bottoming process, albeit longer, is very similar to that of 2001 to 2003. Back then that base set up a bull rally that continued until 2011. The USD is making its last attempts to go higher before experiencing a major decline and when that decline starts (which is likely to be soon), the silver price will take off in a big way.
Silver appears to be in the very late stages of its Head-and-Shoulders bottom and, with the price still not far off the Right Shoulder lows, we are at a very good point to continue accumulating silver investments.
Supply and demand trends are clearly poised to continue tightening the silver market and when the next crisis hits the silver price will be significantly impacted by this trend. It may not happen this year, but the 20,000-foot view of this market says a crunch is on the way. It’s supply/demand 101.