By: John Fisher
On September 1st, 2009, I posted an article entitled “$1,000 Gold in the Rearview Mirror.” Now it’s time for silver.
Silver has closed three consecutive days over $20 per ounce. Three consecutive closes are viewed as a definitive piercing of a major support/resistance level. Even if silver “backs-up” in the short term, do not fret. It would be nothing more than testing the former resistance level of $20, which has now become support.
Where to now?
- Psychological levels: $25 and $50 – it isn’t any more complicated than that.
- Technical levels: Here one can get into all sorts of gyrations with Bollinger Bands, Fibonacci Retracements, Relative Strength Index, and more. The only “technical” level that long-term investors really need to be concerned with is the 1980 nominal silver high of $49.45.
This is the big breakout! If you are not on board, you need to get on now – otherwise be prepared to pick up the train further down the track. That statement is not some slick motivational tactic. That statement is evidenced by, and legitimized by its predecessor, gold, who did the same thing last year.
Above all, IT IS NOT TOO LATE!!! You will see price rises in silver unlike anything you have seen in gold!
If you study the centuries old history of the relationship between gold and silver, you will find that silver holds dramatically more upside potential than gold. I have been recommending an over-weighting of silver to all of my clients.
However, nothing moves in a straight line and we expect to swap from silver back to gold at some point in the not too distant future. There is as much or more money to be made from swapping back and forth between gold and silver as the ratio between the two moves, as there is by simply holding the metal.
All Things Considered – John’s Commentary
Action to take: IF YOU ARE NOT TAKING ADVANTAGE OF THE GOLD/SILVER RATIO AND SWAPPING BACK AND FORTH BETWEEN THE TWO, YOU ARE LEAVING A LOT OF MONEY ON THE TABLE – AS MUCH AS TWO OR THREE TIMES YOUR INVESTMENT OVER THE COURSE OF THIS BULL MARKET. One of the oldest and most respected in the game, Franklin Sanders, taught me this technique. It has worked like a charm for my personal portfolio for many, many years.
For a simple overview, refer to the “Gold to Silver Ratio” page on our website:
https://fisherpreciousmetals.com/resources/silver/gold-to-silver-ratio/
Also, on the “Articles” page, see the article “Silver: The metal that moves thrice faster than gold.” :
https://fisherpreciousmetals.com/2009/05/silver-the-metal-that-moves-thrice-faster-than-gold/
What to buy now: Our weekly specials include Austrian 100 Coronas. Minimum of 10 ounces at 3.9% over spot. We also have 90% Silver Coin Bags (our choice of dimes or quarters) at 3.9% over spot. There is an additional quantity break on the Silver Coin Bags for orders over $1,000 face value (715 ounces), for 3.4% over spot. Free shipping and insurance on both products.
Quote of the day: “I see a great future for gold and silver coins as the currency people may increasingly turn to when paper currencies begin to disintegrate.” – Murray M. Rothbard
