Posted on 05/19/2023 2:21:09 PM PDT by nickcarraway
Silver remains below its all-time high while gold is trading near its record levels. If the gold/silver ratio drops below 78, it could give silver a sustainable bullish trend and potentially push it towards multi-year highs.
-Silver gained strong upside momentum in recent months but remains cheap compared to gold.
-Demand for precious metals is rising as traders search for safe-haven assets amid a banking crisis in the U.S.
-If gold/silver ratio settles below the 78 level, silver may gain strong upside momentum.
Unlike Gold, Silver Settled Well Below Its All-Time High Levels
Silver enjoyed strong support in recent months and moved toward the $26.00 level. While gold is close to its all-time high of $2075, which was reached back in 2020, silver stays well below its record level. Silver touched highs at $49.81 in April 2011 and has never moved close to these levels.
This year, silver has a chance to gain sustainable upside momentum as traders focus on the problems of U.S. banks and search for safe-haven assets. Gold is already trading near all-time high levels, which is bullish for silver. Meanwhile, the gold/silver ratio has settled near the strong support in the 78 – 80 range. Many traders use the gold/silver ratio as an additional indicator for their decision-making.
While the gold/silver ratio is simply a numerical indication of how many ounces of silver can be bought with one ounce of gold, it has its technical levels which serve as entry points. In case the gold/silver ratio manages to settle below the 78 level, it will have a good chance to gain strong downside momentum and move toward yearly lows at the 75 level. This scenario is bullish for silver.
Taking a look at the big picture, silver reached its all-time high at a time when the gold/silver ratio declined towards the 32 level. While this was an extreme development, it is obvious that the gold/silver ratio has plenty of room to move lower in case the right catalysts emerge. As gold gets more expensive, investors may focus on silver, which is relatively cheaper, and push it toward multi-year highs.
Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.
I need to buy me some more silver…..
Word of caution. The Chinese have made almost undetectable counterfeits. Same size, weight . . etc. Be careful who you buy from.
Is this guy related to nostradamus?
Lol
I really wish i would though.
I hace a bunch of us govt Silver certicicates.
I have some silver but I wonder what a random blog post shilling it has to do with the subject matter of this site.
Nothing
Ping! Silver & Gold!
It’s twue, it’s twue. Ask Glenn Beck.
I have about 300 silver eagles I bought a decade ago. Silver does seem way underpriced, it’s overdue for a run up.
They won’t redeem those silver certificates for silver anymore.
Runup? Silver is the most abundant precious metal on the face of the planet. Running out of. Nope.
You won’t get rich stacking silver, but you won’t go broke either. Hardest part is getting good value when you want to sell it.
LBMA silver vault levels are contracting sharply, and total registered silver on COMEX is too. In fact, the amount of registered silver on COMEX has fallen by nearly 70% over just the past 18 months. Silver is also an industrial metal used in photovoltaics and stuff. I don’t think the supply is as abundant as you think.
> I have about 300 silver eagles I bought a decade ago. <
For the sake of argument, let’s say you decided to sell them to a dealer tomorrow. Does a copy of the sales agreement go to the IRS? And if so, do you have to prove your cost basis?
Anyone here know?
No.
And if so, do you have to prove your cost basis?
Only if you're audited. As far as reporting capital gains to the IRS, you're on your honor when you fill out your taxes.
This is timely. I bought 30 more ounces yesterday.
A silver eagle is legal tender at $1 ea., right?
What you say ?
These are contractual obligations that say the Treasury will do something on demand.
How could the United States of America default on contractual obligations, That would be a debt default bankruptcy.
We all know something like that could never happen
I like ‘junk’silver, though the premium is pretty high on it.
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