Being Late Is Great

Normally the word late has a negative connotation. Not in this case. The historical fact that Silver is lagging Gold can be used as an edge for investors. Being late is great. Not needing to be first translated into less risk. Gold being in a secular bull market makes it pricey to attain. Silver prices in comparison are just starting to rise. Typically, Silver outperforms Gold later down the road. It moves later but overall it moves further and faster.

This isn’t all. Did you know that recovering Silver in most cases isn’t worth the effort? While Gold gets “refurbished” out of all kind of junked tech items, Silver isn’t. This means it is lost and its overall supply diminishes over time.

Gold/Silver-Ratio, Monthly Chart: Being Late Is Great

Gold-Silver Ratio, monthly chart as of May 27th, 2020

Gold/Silver-Ratio, monthly chart as of May 27th, 2020.

At this moment of time it takes about 100 units of Silver to purchase one unit of Gold. The monthly Gold/Silver-Ratio chart above illustrates that nine years ago it took only 31 units to accomplish the same purchase. Relationships like these rarely stay long in extreme measurements like the two mentioned. Consequently, it is quite reasonable to assume that we will at some point find ourselves near the 200 moving average, a value between those two extremes more likely in the future. Once Silver which is always late and lags catches up with Gold’s extension, this medium Gold/Silver-Ratio zone will be reached. This means there is a force in place driving Silver prices still higher.

Silver, Daily Chart: Catch Up Game, A Strong Climb

Silver in US Dollar, daily chart as of May 26th, 2020 b

Silver in US-Dollar, daily chart as of May 26th, 2020.

We posted numerous entries and exits live in our free telegram channel in recent weeks. One reason that supports our activity is the strength of the up-move. Not only did we have a staggering above 50% up-leg as a whole, but the give away is the atypically small retracements in price. Looking at the red down percentages in the above daily chart of Silver you will find that bears weren’t in charge for significant profits.

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Disclosure: None.

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