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.
Silver put in a double-bottom last fall. It tested its December 2015 low, but couldn’t manage to break below it. Now, after a rally off that bottom, we have a pullback. This could be the opportunity we’ve been waiting for! Look at the chart below of the iShares Silver Trust ETF (SLV) and you’ll see what I mean.
|Image credit: StockCharts.com|
You can see that the SLV, and silver itself, are in big downtrend. It’s just 6% above a bottom that silver tested last year AND in late 2015. The price of this metal is coiling up like a spring and, for even greater upside, you might consider the Global X Silver Miners ETF (SIL) because, when the metal goes up, mining stocks tend to SOAR.
Not only that, the Gold-Silver Ratio — the number of [troy] ounces of silver it takes to buy one [troy] ounce of gold — is at a historic high.
This ratio is one of the most reliable “buy” indicators for silver. When it climbs above 80 … you want to grab it with both hands…We’re closing in on a MAJOR REVERSAL of this ratio, meaning gold must decline (unlikely, as gold’s bull market is just beginning) … OR SILVER MUST RISE!
Talk about having an opportunity handed to you on a silver platter!
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