Chat with us, powered by LiveChat

Profiting from the Silver Skyrocket

05 Sep

Profiting from the Silver Skyrocket

Gold Market Discussion

Throughout the summer our hair was practically on fire so determined were we to let our friends and clients know about the breathtaking opportunity before them in the silver market.  

We put it as clearly as possible in June when we wrote To Make Money… Buy Silver!

As we repeatedly observed, the price of silver was historically low compared to the price of gold.  As it so often does in a bull market, we expected silver to surge and outperform even gold itself!

And it did!  In blockbuster fashion!

How did we know that?  By tracking a simple metric called the Gold/Silver Ratio.

The ratio is simply the gold price divided by the silver price.  It tells you how many ounces of silver you can buy with one ounce of gold.

As your RME precious metals professional will explain, employing a simple strategy of trading from gold to silver and then back as the ratio changes is a time-tested and powerful strategy for increasing the total number of ounces of gold and silver you own without making any additional investments! 

As you can see from the chart, the Gold/Silver Ratio has been high, above 80 to one all year… and kept trending higher!

Then the ratio spiked in July to almost unprecedented 95 to one.  In our radio messages and here on our blog we wrote again in July (here) about the profitable opportunity it presented to trade gold for silver and take advantage of the superior outperformance we expected from silver.  

As forecast, silver’s price performance has been explosive.  It is now knocking on the door of $20 an ounce.

Let’s look in more detail.  Silver had a low last fall of $13.86.  It’s 2019 low, recorded in May, was $14.27.  Since then it has traded as high as $19.69.  That’s a gain of more than 40 percent in a year, and up almost 38 percent from its May low.

What Should You Do Now?

The Gold/Silver Ratio remains above 80 to one and still suggests that silver’s gains should continue to outpace gold.  Experienced gold and silver investors and professionals want their portfolios to emphasize the precious metal poised to move up the most.  At this ratio, they will trade and adjust their portfolios to emphasize silver.  Do as they do.  Take advantage of this strategy and increase your precious metals holdings without making any additional purchases. 

See our post from last March How to Acquire More Gold with Ratio Trading,  It illustrates the power of this simple trading strategy using a ratio like today’s of 80 to one to trade gold for silver, and then targeting a ratio of 50 to one to trade back into gold.  

Your RME Gold professional will explain this powerful strategy for profit in detail, answer your questions, and then alert you as the strategic ratio changes develop in the future.

jim-sign