• Gold: 1,408.15 -13.96
  • Silver: 15.24 -0.11
  • Euro: 1.136 -0.001
  • USDX: 96.288 0.148
  • Oil: 59.03 0.28

If History Still Matters, Silver Is Poised For A...

It’s been a pretty good couple of months for precious metals, but more so for gold than silver. Both are up but gold is up more, and the imbalance that this creates might be one of the major investment themes of the next few years. The gold/silver ratio – that is, how many ounces of silver it takes to buy an ounce of gold – has bounced all over the place since the 1960s. But whenever it’s gotten extremely high – say above 80 – silver outperformed gold, sometimes dramatically.

Will Silver Soon Follow Gold’s Lead?

The super-rich and large institutional investors who are more apt to take contrarian positions in overlooked assets generally prefer gold over silver because it is more convenient for them to accumulate in large quantities. We are still in the stealth phase of a precious metals bull market. When we enter the public participation phase – and demand for physical bullion increases – we have no doubt that silver will shine.

These Two Charts Virtually Scream “Buy Silver”

Silver is currently trading around $14.84 an ounce. This is around 30% of its 1980 all-time high of $50. However, this is an incomplete representation of what silver is really trading at, relative to US dollars. When you look at the silver price, relative to US currency (the amount of actual US dollars) in existence, then it is at its lowest value it has ever been (see chart below). Also, it is ridiculous that one ounce of silver cost $50 in 1980 when there were about 132 billion dollars in existence, whereas today it is only $14.84 at a time when there are 3 304 billion dollars in existence (note that I have used rounded numbers which created some distortion).

The Rise of Silver and Major Economic Decline

Currently silver priced in the Dow is close to all-time lows. Economic conditions has been favourable to paper and debt-based assets. The bullish wedge is an indication that all this is about to change. There has now been a breakout of the wedge and the ratio seems ready to go much higher. On the chart, I have indicated how the periods indicated by the green arrows have been associated with economic prosperity, and the red one with economic decline...

Rocket Fuel

According to silver analyst Theodore Butler, various hedge funds are currently short 440 million ounces of silver on the COMEX futures market. That’s over half the silver that’s mined in a year. These funds manage money for big investors and they rely on computerized trading programs. Human judgements and emotions don’t enter into trading decisions. Their foremost trading strategy is to buy or sell when moving averages are penetrated. If the price of silver or gold moves upward to the point it goes through the average of prices over the past 50 days, it causes some short selling programs to buy and close out their short position. A penetration of the more important 200 day moving average sparks major buying and can lift the price significantly.

Precious metals and silver technical video-update...

If silver can break $14.61 area, the downtrend can be negated.

When (Not If) Silver Has a "Bitcoin Moment...

So, don't sit around with "not enough" – or not any – physical silver (and gold) until a "bitcoin moment" in the metals takes place. If you hesitate long enough, you just might find yourself benched during the entire "last 10% (and majority profit potential) of an explosive finale. But by all means, avoid contracting a terminal case of FOMO (fear of missing out), which causes you to buy the top!

Silver – Eight Years Later

Eight years ago, silver reached $48 per ounce. COMEX changed the margin requirements, and others dumped thousands of paper contracts on the COMEX market to smash prices lower. They succeeded, as usual. Old news! As they say, “Wash, rinse and repeat.” Gold and silver prices fell hard since their 2011 highs, while central banks levitated the S&P 500 Index, most stocks, and bonds with massive infusions of cheap debt. Central banks also purchased stocks and bonds. Inexpensive debt, QE, and bond monetization were good for the DOW and S&P 500 stocks. Central banks are reluctant to change policies, but the world may have arrived at another “Peak Debt” moment similar to 2008. What are prospects for silver and gold in the next several years? What data backs up the prognosis?

GoldSeek Radio Nugget: David Morgan - "We...

The world's appetite for US' debt has peaked a few years ago. It is De-Dollarization..

World’s Largest Primary Silver Miner Production...

Silver production at the world’s largest producer fell significantly in the first quarter of the year. Fresnillo PLC reported a decrease in silver production in Q1 2019 versus the same period last year, due to lower ore grades and reduced volumes of processed ore at its Fresnillo Mine. Furthermore, while silver production fell the most at its Fresnillo Mine, the company also experienced declines at its Saucito and San Julian Mines. Total silver production at Fresnillo PLC dropped by 15% in the first quarter compared to the same quarter in 2018.