Thinking back to my collection of old Lind-Waldock notebooks, where I ran one of the largest metals and energy retail offices from 2004 to 2011, I have often documented the twists and turns on a daily basis. unique markets while trying to find the next one. play before everyone else. The 20% jump in silver this week was the biggest weekly gain since Lehman’s bankruptcy, and it looks like the foundations for a substantial bullish move continue to hang.
As gold hits new all-time highs, I remembered that silver has historically outperformed gold in bull markets. Some of my previous notes had indicated that from October 2008 to September 2011, gold futures rose 140% while the price of silver jumped 350%, pushing the gold / silver ratio to a low of 44/1. Additional notes had indicated that since 1973, when the United States stepped off the gold standard, the average was around 60 to 1, and that the all-time low dates back to a period from 1976 to 1980, when it had reached a low of 16/1.
If you did not receive the new edition of our free Gold Trends Macro Book, it has been updated with silver slides. This monthly updated booklet will provide you with all the quantitative analysis of the precious metals markets. You can request yours here: Free Gold Trends Macro Book.Now, I’m not saying we’re going to go back to 16 to 1 (that would put silver at $ 125 an ounce), but silver should continue to follow and outperform gold in the near term. Remember, the purchasing power of the American people continues to worsen after five straight weeks of the dollar falling, followed by a combination of ultra-low real returns and heightened economic and geopolitical uncertainty. We have covered the technical background of the gold and silver market extensively in the Blue Line Futures Morning Express research reports, so be sure to stay up to date with developments by signing up for a free two-week trial in clicking the link here: Sign up for the two-week free trial of Blue Line Express
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