Posted by Francis Koh on 17 Feb 2015

Silver and Gold: Why Now?

Examine the graph of the silver to gold ratio over the past 25 years.

  • The major lows in silver prices during the past 25 years are marked with red arrows on the graph. They coincide, more or less, with lows in the silver to gold ratio.
  • The low in November of last year is indicated by the circled red arrow.
  • It seems likely that a lasting low for silver was achieved then.

silver_gold_ratio_1990_2015  silver_monthly_1990_2015  silver_s&p_ratio_1990_2015 national_debt_1975_2015

Examine the graph of silver prices on a log scale for the past 25 years.

  • Prices are highly volatile (we all know this).
  • Prices are increasing exponentially, which is difficult to see unless you look at long term charts. Many people obsess over the April 2011 peak and the subsequent 70% loss in price, and assume the downtrend will continue forever. It won’t.
  • This chart also shows a sequence of lows in silver prices.

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