Buy Silver not Gold.

Both gold and silver are way oversold at the moment compared to US$ and likely to go up (despite what mainstream will lead you to believe). So I’m not saying gold will be a bad investment.. this chart just looks at relative merit of gold verus silver.

This is the Gold Silver Ratio. As the line moves up that shows gold getting more expensive compared to silver. To me it looks likely we are very near the top of the range. While Silver could still show more weakness in very short term and the line move up further. it looks distinctly possible there may be some big moves up in value (down on that chart) ahead for silver.

Note several times in past silver has suddenly gained value compared to gold very rapidly on this chart. I won’t be at all surprised to see this happen again at some point. Which is why at the moment I’d say buy silver not gold. (Physical metal of course, not shares in an ETF)

If you feel like doing a ratio swap of silver back to gold one day in the future maybe 3 years time for example. I’d be looking at possible target of 27 to 28.

Disclaimer: These opinions are my own. Your own investment descisions are of course your own responsibility.

4 thoughts on “Buy Silver not Gold.

    1. Good luck! I switched some gold to silver at ratio about 55. Wish I knew then what I know now! Have persuaded the wife to let me buy a bit more silver though 😉

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