Silver is an odd metal.
The crowd loves to hate on it for decades. That’s simply because they don’t really understand it. But when sentiment flips, it becomes a rock star.
I think silver has entered its rock star period. And it’s about to generate a string of hits. They won’t be back-to-back, but they will be regular, with each subsequent one outdoing the previous.
You know what that means. I’m talking about an eventual new record all-time nominal high, followed by still more new records.
That probably feels pretty far off right now. But it’s likely to arrive sooner than most expect. When it happens, many will say it’s unsustainable. They’ll say silver will crash any day. And that’s okay…for them.
Like bitcoiners, those who really understand will become the new “silver hodlers”, and they will profit the most. If the recent silver rout has you worried, then a little perspective should help put your mind at ease.
After all, silver’s in a long-term bull market. And those never go straight up. The great thing is, this one is still very young.
SILVER IN THE REARVIEW MIRROR
Silver bottomed at $13.50 back in early 2016. In typical silver fashion it rose in spurts, then corrected and moved sideways. By September 2019 it had reached $18.50 for a 37% gain, or about a 10% annual average return. Not bad, despite the volatility.
Then the Covid-19 crisis hit, and silver crashed to $11.75 within a month. It was a temporary blip. The metal then zoomed to $30 in under 5 months. It’s now been 7 months since, and silver is currently around $26.
If silver was going to crash, it would have done so by now, and we’d be back near $18. Instead, the metal’s been rangebound.
The way silver has been behaving is pretty much par for the course. Silver investors need to expect more of it, not less. When the gold to silver ratio peaked at an all-time record high near 125 last March, it appears to have marked a turning point.
Silver vs. Gold Performance