If This 40-Year Pattern Repeats, Silver Prices Could Go A Lot Higher

Gold-to-Silver Ratio Says Silver Prices Could Surge

The mainstream media is busy boasting about the stock market. Indices hitting all-time highs is the topic of discussion all over the place. But don’t get too fixated on it. Look at undervalued opportunities. In particular, pay attention to silver prices.

Your upside isn’t usually big when something is already at all-time highs. Investors make their biggest returns by buying something when no one else wants to buy it, and selling that thing when everyone wants to buy it. Silver seems like one of those opportunities at the moment. It could be the next big trade in the making.

Silver is currently undervalued. The precious gray metal is ignored, and it has the potential to go past its all-time highs.

When it comes to silver, there’s one ratio that investors really need to pay attention to: the gold-to-silver ratio. For long-term readers of the Lombardi Letter, this shouldn’t be a new concept. It has been mentioned here several times.

The gold-to-silver ratio essentially indicates how many ounces of silver it takes to buy one ounce of gold. This ratio is very powerful in telling us what the silver valuation is.

Look at the following chart. It plots the gold-to-silver ratio over the past 40 years.

Chart courtesy of Stockcharts.com

In general, the higher the gold-to-silver ratio, the more undervalued silver prices are.

However, there’s more to it.

Over the past 40 years, something interesting has been happening. Whenever the gold-to-silver ratio goes above 80, it eventually comes back down to around 45. Not too long ago, the ratio surged past 100. Currently, it’s on its way down, standing at 68.

Could this ratio go down to the 45 level again? If the 40-year historical pattern repeats itself, then yes. And if it does, massive rewards are ahead. Silver prices are already up by more than 100% since their lows in March 2020, but the upward move may not be done yet.

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Disclaimer: There is no magic formula to getting rich. Success in investment vehicles with the best prospects for price appreciation can only be achieved through proper and rigorous research and ...

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Almoni33 2 weeks ago Member's comment

I'm ready to buy $ si l not more than 40 dollars.

As for silver, let it show us 36 $ first - and then we'll talk about the rest.


I'm loaded with silver powerfully

Almoni33 2 weeks ago Member's comment

despising all the predictions of smart guys gold is not falling and this is a hint