Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With Fincrew.my - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Why BITCOIN NEW ALL TIME HIGH Changes EVERYTHING! - 22nd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

History Says You Have 27 Days to Buy Silver Before It Rises

Commodities / Gold and Silver 2018 Mar 06, 2018 - 07:02 PM GMT

By: GoldSilver

Commodities

Jeff Clark: Mike Maloney revealed that he recently made a large purchase of silver because of how undervalued it is. And he bought silver instead of

gold because of how high the gold/silver ratio is.

If you want to mimic Mike’s purchase of silver while it’s still undervalued, history says you only have 27 days to do so.


As many of you know, the gold/silver ratio (the price of gold divided by the price of silver) has touched 80 a number of times over the past 25 years. And it’s never stayed there long. History shows this is the level at which silver is grossly undervalued compared to gold. Sooner or later the ratio falls to account for the large discrepancy between their prices.

Here’s an updated view of the gold/silver ratio since 1995, along with silver’s gains after the ratio reversed from 80.


You can see how much silver has outperformed gold when the ratio falls. And that some of those gains have been big—two of them were measured in triple digits.

You can also see that after dipping below 70 a couple times over the past two years, the ratio has returned to the 80 level (80.4 as of March 5). This pattern is similar to what it did in 1996. And in spite of a ravaging bear market in precious metals at that time, silver gained 36% over the next 14 months.

But something else sticks out in the chart: The gold/silver ratio has never remained above 80 for very long.

This is significant if you’re a buyer because it means that the historical window to purchase silver at an undervalued price compared to gold has been small.

Here’s the same chart with the number of days the ratio stayed above 80 before reversing.

You can see that the number of days one has been able to buy silver while the ratio is above 80 has been few. And this is calendar days, not trading days. This is highly actionable information.

Since 1995, you can see there have been three occasions where the ratio registered at or above 80. The average of those days is 47. As of March 5, the ratio has been at or above 80 a total of 20 calendar days—so if it met the historical average this time around, you’d have 27 calendar days left to buy before the ratio drops.

In other words, you’d have until April 1 to buy silver before the price potentially moves higher (the ratio could also move lower if silver fell less than gold, but the price is already low).

The ratio could drop sooner or later than 27 days, of course. The point to this exercise is that the ratio has historically remained above 80 for only short periods of time. Thus, the opportunity to buy silver while it’s cheap is likely going to be brief.

And April Fool’s Day has some significance to precious metals: It marked the very bottom of the bear market in 2001 (a Sunday), and the beginning of the second biggest bull market in modern history. Those who scoffed at gold and silver then because of their low prices ended up being the fools.

History shows the silver price has logged some very nice gains when the gold/silver ratio reverses. Any time it has hit the current level, its stay there has been short-lived.

The conclusion is simple: Buy silver now, because the ratio says it is unlikely to remain at these prices for long.

Source: https://goldsilver.com/blog/history-says-you-have-27-days-to-buy-silver-before-it-rises/

https://goldsilver.com

© 2018 Copyright  GoldSilver - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in