Make Kitco Your Homepage

All-in gold doesn't make sense; silver, oil are the real winners - Phil Streible

Kitco News

The gold-silver ratio will likely drop to 60 in the medium term as gold continues to lag while silver outperforms, said Phil Streible, chief market strategist of Blue Line Futures.

"I believe that all of a sudden silver is going to disconnect from gold and start to travel with platinum and copper and be what it truly is, which is this green energy metal," Streible said.

The best-case scenario for silver investors is for this disconnect to happen and the gold-silver ratio to breakdown to lower levels near historical averages, Streible said.

“All too long silver has been the victim of gold all these years, travelling with it and not seeing its characteristics and its true nature,” he said.

Gold is likely to lag behind until much later in 2021, Streible added.

“People really need to be able to get comfortable being able to sell the asset and buy the asset on corrections,” he said.

On crude oil, energy is going to benefit from a re-opening of the economy next year as the vaccine for COVID-19 rolls out.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.