Jun 3, 2022
I know silver investors are discouraged. The price action doesn’t reflect what we think it should, particularly when inflation’s been spiking.
There are valid reasons for the lag in price—a soaring US dollar, a perceived drop in industrial demand from recession or stagflation fears, a crashing stock market forcing investors to liquidate other holdings—but those don’t make us feel any better.
I think one of Mike Maloney’s strengths is that he views trends through the lens of history. As he’s said many times, the further you look in the past, the further you can see into the future.
I decided to employ that strategy with the gold/silver ratio, to examine how silver has performed during its biggest declines over the past 50 years, to give us some insight into what it might do in the next decline. As any silver investor knows, a drop in the ratio means silver is outperforming gold—I wanted to see just how much.
I found the results of this research interesting. See what you think…