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Still Time for the Gold and Silver Strategy

11 Jan
gold bars 50 day moving average

Still Time for the Gold and Silver Strategy

Gold Market Discussion

Gold and Silver Ratio: It’s Not Too Late

Both gold and silver have shown impressive strength lately.  Regular readers of these comments will note that we repeatedly urged clients to take advantage of the Gold/Silver Ratio late in 2018.   (See our December 14 post, Time for Silver to Play Catch Up! and September 30 The Gold-Silver Ratio is Making a Strong Case for Silver).

During that period, about six weeks ago, the ratio hit a high for this cycle of just under 87 to 1.  Since then, the ratio has moved lower, showing a marked downward bias in the last three weeks.  

The wisdom of our recommendation to trade gold for silver at these levels has been validated by silver’s stronger performance and a drop of almost five points in the ratio.

Trading the gold/silver ratio is a time-honored strategy that involves switching your position into the precious metals that are relatively undervalued and promises the most appreciation.  

With Friday’s close, the Gold/Silver Ratio is 82:1.  For now it continues to favor shifting your precious metals investments out of gold and into silver.  At some future date, when the ratio moves lower, the strategy will involve trading that silver back into gold WITH A NET INCREASE IN THE TOTAL NUMBER OF OUNCES OF GOLD YOU OWN!

gold and silver investments

We recommend this strategy as a means of growing your precious metals holdings over time without making additional investments.  Its chief advantage is that you are always holding precious metals, either gold or silver.

We still think there is still time at these levels to employ this strategy.

Please take a minute to review our earlier posts about the Gold-Silver Ratio.     

Trading the Gold-Silver Ratio is a preferred strategy.  It is one I have used myself for many years.  Your RME broker will explain to process in easy to understand terms.

Take a listen to our latest commercial, although it’s nothing new to readers who have already been listening for the past several months…

RME :30 Commercial- January 2019