A good time to buy silver

stinkynuts

Super
Jan 4, 2005
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Gold is trading at almost 100X silver. Silver is undervalued and will likely catch up in a few years. Most likely it will double. In a market where there is a lot of uncertainity and everything is overvalued, I definitely would start a position in silver. The US debt crisis could be devastating to the economy and markets, and silver is a good hedge. With Trump causing chaos, world economies collapsing, and unstable geopolitical events worldwide, it's important to protect your assets against a market crash.

Once I cash out my bitcoin, I plan to allocate approximately 10-20% in silver.

Precious metals are generally only used to maintain value in relation to inflation. That is, they don't gain or lose intrinsic value, but since fiat is devalued due to governments printing more money, it takes more fiat to buy precious metals that have maintained their value. However, when a precious metal is undervalued, or there there is great uncertainity and risk, it could be a wise choice to add it to your portfolio. Bonds are useless if inflation persisists and governments raise rates.
 
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stinkynuts

Super
Jan 4, 2005
8,063
2,508
113
.


How to use the gold-silver ratio for trading
Analyze the history of the gold-silver ratio
Historical gold-silver analysis can help you understand how the ratio has behaved in the past and may offer insights into how it could behave in the future, though as with any investment indicator, it’s not guaranteed.

The historical average gold-silver ratio is roughly 15:1, and the 100-year average is roughly 40:1; these figures are useful long-term averages that can help investors determine the exit from silver to gold, or vice versa.

You can use charts and data to help identify long-term and short-term trends, resistance levels and other important indicators that may help you make trading decisions about whether or not it’s the right time to invest in gold or silver. However, be sure to consider all of the factors beyond what the ratio tells you before investing, including but not limited to:

  • Central bank reserves
  • The strength or weakness of the U.S. dollar
  • Current levels of inflation
  • Current interest rates
  • Geopolitical unrest
 
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