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Silver Market Update - massively undervaluation relative to gold makes it irresistable


Silver’s latest COT looks much more positive than gold’s which rather suggests that we can look forward to silver outperforming gold for a change before too much longer. This chart certainly indicates that there is plenty of room for silver to advance from here.


Just how undervalued silver is relative to gold is made dramatically clear by the 20-year chart for silver over gold shown below. Every time this ratio has dropped to a really low level it has led to a major sector bullmarket, but now it is much more extreme suggesting both that the looming bullmarket will be big and that it is likely to start soon…

With respect to silver’s relatively rotten performance compared to gold in the recent past, this is a good point at which to draw your attention to an excellent article by Jeff Clark on the subject entitled Why is Silver Stagnant and When it Start Moving? I’m sure you will agree that this is most encouraging article for silver investors.In addition to silver being very cheap relative to gold, there is now a big difference between the paper price for silver and the physical price for silver, which, as with gold, is viewed as a very auspicious development. IT IS VERY IMPORTANT NOT TO LET THIS LARGE PREMIUM PUT YOU OFF BUYING PHYSICAL SILVER IF YOU ARE MINDED TO, because this premium is likely to get even bigger, and if silver starts to take off higher again, physical silver could very quickly become impossible to obtain. Use the cloak of recent weakness to get it on board as fast as you can Even if a worst case scenario eventuates and the stockmarket drops despite Fed pumping and silver drops back towards recent lows, so what? When the hyperinflation hits silver could easily end up at $100 or $200 an ounce, and maybe much higher, so why quibble about a possible $3 or $4 drop from here, which is any case is considered much less likely now?

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