www.silverdoctors.com
Everyone seems to be focused on Gold recently while ignoring the real upside potential in Silver…
by Chris Vermeulen of The Technical Traders
Everyone seems to be focused on Gold recently and seems to be
ignoring the real upside potential in Silver. With all the global
economic issues, military tensions, geopolitical issues, and other items
continually pushed into the news cycles, it is easy to understand why
traders and investors may be ignoring Silver.
Silver has really not started to move like the other precious
metals. Gold is up over 45% since 2016. Palladium is up over 350%
since 2016. Silver is up only 29% since 2016. The Gold to Silver ratio
is currently at 86.7 – very near to the highest level on record going
back over 25 years.
Historically, Silver rallies 6 to 12+ months after Gold begins a
price rally. The big break in the Gold to Silver ratio comes at a time
when Gold rallies by more than 30% to 60% faster than the price of
Silver. In other words, when a major disparity sets up in the price of
Gold compared to the price of Silver, then Silver explodes higher –
which results in a drop in the Gold to Silver ratio.
Currently, the relative price of Gold to Silver is over 200%.
Considering this fact and considering the under-performance of Silver
recently, our researchers believe Silver is setting up a massive basing
pattern in preparation for an explosive upside move.
Our research team put together this chart to help illustrate the real
upside potential in Silver. This Monthly chart highlights the Gold to
the Silver ratio (Darker BLUE), the price of Gold (Gold) and the price
of Silver (light BLUE) over the past 20 years.
Every time Gold broke a sideways Flag formation and began to rally
substantially higher, Silver followed Gold higher 5 to 12 months after
with an incredible upside price rally. In 2005, Silver rallied over
100%. In 2009, Silver rallied almost 400%. Now, in 2020, could Silver
rally 100%, 200%, 300% or more?
In the recent past, we’ve authored numerous articles about Gold, Silver
and precious metals highlighting our expectations going forward. Our
incredible research from October 8, 2018, floored many institutional
traders and researchers because we were able to accurately predict the
future price moves in Gold 9+ months into the future. Take a little
time to read some of our earlier research posts
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