The following came to me over the weekend, and I know these statements to be true, and also believe, as the writer, that this is a new Bull Market that is still young, and has barely yet begun to take off! Enjoy…
“The “Ultimate Wealth Signal” is telling us that it’s time to buy…
We’ve seen this important indicator trigger a “buy” signal six times over the past 40 years. It happens whenever there is a bull market in precious metals. And every time, the subsequent performance of a specific asset has been astounding. The asset we’re talking about is silver – and its performance compared with gold.
Traditionally, silver tends to lag gold. When gold makes a move like we’ve seen so far this year, it often takes silver a little longer to catch up. But when it does… it can really skyrocket.
During the first quarter of this year, for example, gold climbed roughly 16%. Yet the price of silver only increased a mere 9% – just more than half the gain in the price of gold.
But that’s when silver started to make its move. As you can see in the chart below (sorry, no charts), silver began outperforming gold back in April. The two metals then traded together over the next several weeks… until this month.
So far this year, silver has soared more than 40% compared with around 25% for gold. And the trend is just getting started…
Over the past 40 years, the silver-to-gold ratio has averaged around 60. That means it would take 60 ounces of silver to equal the value of an ounce of gold. (If you look back further in history, the ratio is closer to 16. But we’re focusing on the years since the U.S. left the gold standard.)
During bear markets in precious metals, the ratio extends to more than 80. Then, as the bull market in gold and silver gets under way, the ratio narrows. When the price of silver last peaked in 2011, the silver-to-gold ratio dropped close to 30.
Earlier this year, the ratio – the “Ultimate Wealth Signal” – spiked to around 83. That’s a sure sign of a bottom in precious metals. It dropped to less than 70 recently… and sits around 67 today.
The reason is clear from the first chart… The price of silver is appreciating faster than the price of gold. As silver continues to outperform gold, this ratio will decrease. The opposite is also true. When gold falls, silver falls faster. But as you know, we believe we’re on the cusp of a historical bull market in precious metals that could last several years. The next bull run is just getting started.
The global currency system is actually in the process of collapsing. Central banks have driven interest rates to zero percent… and in some cases, below zero into negative territory. These policies, combined with the central banks’ practice of buying their own sovereign bonds (so-called “quantitative easing”), have damaged people’s faith in the world’s paper currencies… As a result, investors are fleeing to precious metals as a means to store wealth.
And as the momentum behind gold continues to increase, silver will also soar. In previous bull markets, silver has outperformed gold. We expect that to be the case again this time… meaning silver stocks are about to take off.”
I believe the above, and I’m all over it, everyday, in my stock analyzer. I’m able to find the best of the gold and silver mining stocks within the database. There are more than 100 issues there, and i am scanning the top 1/3 of those almost daily. I have at least a dozen in my trading account, and as a result of my specific effort, and at absolutely no cost to you, (whereas, these people are charging some $1,500, if I remember correctly), I’ve outperformed their effort by some 50%. they’re about around 40% at this time, and I am ahead by 63%… and, we started at the very same time.
That’s simply the difference between our research styles, and the fact that I can look right into this daily, to conduct research and analysis… reporting it to you as briefly as possible each day. Please, share it, if you will!
As I post this, gold is off $2, but silver is up $.06, as of 7:50 am EST Monday morning.
Here’s to your accumulation of real wealth!
Harold F Crowell