In the same category

Here’s What Silver Does after the Gold/Silver Ratio Reverses

IMG Auteur
Published : August 10th, 2017
379 words - Reading time : 0 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
[titre article pour referencement]
0
Send
0
comment
Our Newsletter...
Category : Gold and Silver

Jeff Clark, Senior Precious Metals Analyst" name="description"/>

There is a very specific condition for silver that, has been a fairly reliable predictor for the price. Once this condition is met, silver has historically soared over the next two to three years.

Since the mid-1990s, the gold/silver ratio (gold price divided by the silver price) has hit 80 a total of four times. While the ratio has certainly been higher in the past, since 1995 it has reversed shortly after touching this figure.

And what has the silver price done when the ratio reverses?

My friends at First Majestic Silver (full disclosure: I own the stock) put together a compelling chart that shows this trend. If you’re a silver bull, it’s pretty exciting.

They measured gold and silver’s price performance after the ratio hit 80 and reversed. Check it out.

In all three of the last times the gold/silver ratio hit 80, it reversed and the silver price gained a significant percentage. It rose in every instance, and since the ratio was falling, it outperformed gold by a wide margin. And notice that the process was not short-lived, but lasted 2-3 years.

You’ll also notice that in every episode, the ratio bounced higher after an initial fall, traded sideways or rose for a period of time, and then abruptly continued to fall again. This mirrors what appears to be happening now—which implies the trend is repeating and that silver will likely be much higher by this time next year.

This tendency is fairly reliable, in part because it’s repeated itself under the same conditions. Also because it occurred during a bear market—the mid-1990s were so punishing, in fact, that the period was dubbed the “nuclear winter” by miners. The trend even took place when we know the silver market was manipulated.

  • If the current trend plays out as the prior three times, the silver price is headed much higher within the next year. If it matches past performance, silver will reach anywhere from $30 to $65.

This data argues for patience. It also suggests that now is the time to accumulate the metal, before it rises. Depressed prices don’t last forever.

To prepare for the next uptrend in silver, Mike Maloney just bought some of these and some of these.

 

<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Silver Price Forecast 2019/2018: Silver Bull Market Is Almost Here
19 JulS W.
Hi Rocco. Now that silver has gone below Moolman's 15.995 and according to him that this signals a long term bear market...have you got a pla...
Silver Price Forecast 2019/2018: Silver Bull Market Is Almost Here
14 JulS W.
How can you sell at $60 if you've sold it all $30 What is your stop price $ It will not surprise me to see it go to $10 or $11 because...
The End of Quantitative Easing and Gold
09 JulRocco
Once the fed is done with the tightening cycle, what will happen from there? Will they just keep the fed rate at around 2.9% or will they keep rais...
Silver Price Forecast 2019/2018: Silver Bull Market Is Almost Here
09 JulRocco
100% for a safe profit investment. If it goes above $60 for sure i'm going out and selling ALL my silver to http://nycbullion.com ... I would even ...
Why Is Healthcare So Complex and Over-Priced in America?
03 JulRocco
Insurance companies keep raising the amount of the discount they receive from hospital bills and etc. Therefore hospitals and doctors keep raising ...
Silver Price Forecast 2019/2018: Silver Bull Market Is Almost Here
05 Julprljr
Good ??'s I was wondering the same things.
Silver Price Forecast 2019/2018: Silver Bull Market Is Almost Here
04 JulS W.
If the market ? goes bearish or bullish you have to ask yourself the question "why did I buy silver in the first place?" Do you have a stop? What i...
Silver Price Forecast 2019/2018: Silver Bull Market Is Almost Here
02 JulRocco
Great article, I think/hope silver will continue the bull!! I've invested in too much silver for it to start being a bearish market!
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS