An article published Monday on KingWorldNews titled, 'Silver about to radically outperform gold, plus the bear market is over? Not likely' has a chart embedded in the article that should have silver investors salivating as it shows the extreme divergence that has developed between gold and silver. At this point in time, the graph points to silver as extremely undervalued.
Silver is highly volatile and is famous among investors for overshooting performance against gold in either direction, up or down. If gold goes down, silver goes down even further. If gold goes up, silver should go higher. The chart shows silver massively outperforming gold in 1980 and again in 2011 but not by as much. When gold dropped in value later in the 2010s, silver outperformed to the downside.
Now, we've reached a divergence between the two metals so wide it has never been seen before in history! This screams that silver is so undervalued that that if you bought an ounce today, you'll actually be paying at 1971 prices, adjusted to inflation.
Yesterday morning, the silver to gold ratio was 87 to 1. After FED Chair Jerome Powell's remarks to the Select Banking Committee yesterday in which he hinted that more rate hikes were indeed coming, there was a nasty selloff of precious metals. This morning, the ratio is just over 90:1.
It's inevitable that silver WILL play 'catch up'. I'm not an investment advisor or a financial expert yet, on a daily basis I see hints popping up everywhere and from around the world and see the need to pass on any critical information that would be relevant to my readers regarding silver and gold. The historical silver to gold ratio is closer to 15:1, meaning it would normally take 15 ounces of silver to buy one ounce of gold.
This morning, it's at 90:1!
Doing the math, 15 fits into 90 by 6 times. The divergence in silver and gold suggests silver is out of whack by 500%! I fully expect silver to radically outperform gold in the coming bull run. An article published yesterday on Zero Hedge titled, 'Solar energy production could require most of the silver reserves by 2050' says enough to warrant an investment in silver.
Did you know that solar panels at present, are not recyclable. Did you know that a 100 Watt solar panel uses 0.67 ounce of silver. That's a lot of silver just for solar panels. Personally though, while solar panels are useful, they have their obvious limitations, a.k.a., no sunlight, no power so I don't believe solar panels will eat up all remaining silver stores by 2050 although I do believe a massive amount of silver is destined for solar panel manufacturing.
Most of the gold that's been mined in the last 5,000 years still exists, mostly in bank vaults and in wealthy private hands. The same can't be said for silver. The non-recyclable solar panels are a testament to how industry is using up silver in colossal amounts, never to be used again.
I expect there will come a day when non- recyclables that use up silver will be banned or forced to find alternatives as the true value and nature of silver becomes self-evident.
We've seen a lot of truth bombs come out lately, such as the likely origins of Covid19 coming from the Wuhan lab and the January 6, 2021 so-called insurrection in Washington, D.C., which as Tucker Carlson pointed out after getting his hands on over 40,000 hours of security camera footage, proves the exact opposite of the narrative D.C. politicians have been spewing for more than 2 years.
Another truth bomb that is destined to make its way out into the open is the obvious collusion between the COMEX and the LBMA along with the protection they've gotten from watchdogs like the Securities Exchange Commission. In an average year, about 800 - 900 million ounces of physical silver is mined, yet these two exchanges somehow manage to trade a year's worth of silver everyday and all on paper and they'll easily trade 100 years worth of mined silver every year. It's all on paper and is otherwise physically impossible to do.
What makes that statement so impossible is the fact that in the last 100 years, industry has gobbled up most of that silver so it's not really there. So what are they trading, exactly? The answer... is paper... as in paper derivatives. With the click of a mouse button, $$Billions in silver / gold can be dumped on the market. During last month's smackdown after silver kissed the $24.50 mark, $600,000,000 in paper silver derivatives were dumped on the market over a two-day period. This was exposed thanks to excellent work by Bix Weir.
It's just a matter of time now before silver shoots for the moon and I think it will be much sooner than later. In an upcoming article, I will outline the many countries that have surpassed the critical 100% debt to GDP ratio. This includes the three biggest economies in the world, The U.S.A., China and Japan.
Consider investing in precious metals, my fave being silver because it is so obviously under-valued. Check out the OwnX links below. I'm a customer and have set up a monthly recurring purchase of $50 USD, easily affordable for an old fart like me. Great thing is, you can cash out anytime, in full or in part for cash or for physical metals.
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