Silver is looking pretty relentless. Despite prices rising above 14 year highs the gold to silver price ratio is still 87:1. That is just crazy. Historically the mean over the last 60 years has been 50:1–which means the price of silver is still stupid cheap. In the days when the Dollar was redeemable in gold and silver the historical mean was 15:1!
At the same time the price makes me apprehensive and uncertain about what’s going to happen in the short term. In the long term we will definitely see three digit silver. So that’s why I took out leverage on all of my physical kilo bar holdings and bought more silver ETN shares.
Gold pushing up on $3,700 is not surprising at all. With all of the inflation looting over the past four years it should be $5,000+ already. Falling interest rates and flight to safety/liquidity by financial institutions should push the price to $4,000 relatively soon.
If the knives come out for the precious metals it will be an attack on silver. Silver is still affordable by regular people, but my dealers tell me that retail buying has not increased at all, and in some spaces it has declined. If retail buying starts to surge then that’s when the banks will try to cut the legs out from under the rally. Until then we have the quietest precious metal run I’ve ever seen.
Good luck
