When silver printed its 2022 lows back in September we wrote One Silver Chart Justifies ‘Buy The Dip’ For Long Term Positions. It was one of our most accurate calls this year. We said that the gold to silver ratio chart hit an extreme reading which is a buy area for silver. Our thesis was that it was additional evidence for our bullish silver forecast 2023. So far, it looks like we nailed it. The question is: too late for long term investors to join the silver train or will silver dip again?
Part of the answer to that last question comes from more recent articles written in the public space:
Silver Miners Flirting With Secular Support, Tremendous Upside Potential In 2023 And Beyond
Silver: A Divergence Of Epic And Historic Proportions
Silver: A Strongly Bullish Long Term Setup In Its Leading Indicator
Last week, we added one more specific insight:
Silver: Strong Buy Once This Happens
With that said, let’s look at the chart we used back in September, when silver printed a low and the entire investor community was ‘dumping’ silver. Below is the long term gold to silver ratio chart.
The last green circle is the one when we timed our ‘buy for the long term’ alert. As seen, so far, any readings above 100 points in this ratio have been reliable long term buy signals!
Can this ratio ultimately move back to the long term rising trendline which now comes in at 38 points?
We believe so.
This might happen with a silver price of 75 USD/oz in a few years from now which could come with a gold price of 3000 USD/oz and a gold/silver ratio of 40x. That’s in 3 to 4 years from now, that’s not in 2023!
In the meantime, we see that silver miners are slightly lagging the silver price.
Yes, silver miners are worth a position in any long term portfolio.
In our Momentum Investing service we featured our top silver selection, on December 1st, in a premium article entitled The Silver Market Long Term Very Bullish. Our Silver Mining Top Picks.
