Brace For Impact: Silver Is Firing The Engine!
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Officially, I'm more bullish on silver than any other asset class right now. I want to be absolutely sure that you comprehend what's currently happening in the precious metals arena and with hard assets in general. Compared with gold, silver is the CHEAPEST it's ever been in all of human history.
We don't get to say that kind of sentence more than once in a person's lifetime. You can go back to biblical times and observe periods where gold and silver traded at par with each other, on a 1:1 ratio. More historians quote the classical 12:1 and 16:1 ratios, but in the past 30-40 years, it has ranged between extremes of 30:1 and 80:1.
Today, with gold at $1,398 and silver at $14.98, the ratio is 93:1!
This chart goes all the way back to 1915 and shows 104 years of price history. Notice that apart from a brief period in 1991, when silver actually traded at a 99:1 ratio to gold, the risk/reward ratio in today's environment is unbelievable.
I've just placed an order to purchase 4,000 ounces of silver eagles, but that's only the beginning. I plan to use call options to bet on higher silver prices, invest in 4 "pure silver" plays, and go LONG in the physical trust fund.
I want to show you a stat that will shock you even more than realizing that silver now is the cheapest in its history. It will open your eyes that it isn't only a bargain compared with gold, but relative to ALL asset classes and on ABSOLUTE terms as well!
In 2019, out of 38 major asset classes, 37 are GREEN for the year. Gold is one of them, yet silver is RED – it's the only asset that's down.
You'll hear much more from me about this anomaly, but understand that I'm making higher silver prices my BIGGEST bet.
If the ratio would revert to 70:1 (which is still considered discounted for silver, with gold not budging an inch from its current price), silver would trade for $20.10, which is a 25% gain from here.
The mining stocks that directly mine silver are few and far between. They will SKYROCKET. As you know, apart from cryptocurrencies – which I find hard to believe we will ever replicate our profits with, with Bitcoin going up 4,872% since our alert and Ethereum topping off at 9,328% since our $12/coin alert – our largest profit was a silver miner, going from CAD$0.14 to CAD$1.21.
But, the last two things I will share with you are taken from the guidebook for precious metals bull markets:
She's also in favor of zero rates; in fact, if she ever gets to govern any monetary policy, gold could spike to $2,000 OVERNIGHT.
Going forward, she wants to make the dollar important for the global monetary system by backing it with gold.
Take a look at this, because it's UNBELIEVABLE:
All I can say to that is, LET THE GAMES BEGIN!