The Long-Awaited Silver Squeeze is ON

In case you missed it the gold-silver ratio is down to 87, signaling that the Silver Squeeze is on…like Donkey Kong.

Huh?

Let me explain…

The Gold-Silver ratio is a measure of how the precious metals move in relation to each other.

And it is based on what the industry calls ‘in-situ’ or ‘in the ground’ or what reserves are estimated to be in the ground.

And for over 150 years historical gold-silver ratios average between 18-20.

 

Translation:  It means that for every ounce of gold that exists there is a ‘ratio’ for the ounces of silver that exists.

 

And the ratio is calculated by the price of gold divided by the price of silver.

 

Example:  In round numbers…Gold price ($2,900) divided by the Silver Price ($33) = 87 ratio.

 

And here is where it gets interesting.

Since historical averages are 20, that would mean that the price of silver today should be $145.

 

Wait! What?

 

Do the math again only use 20 instead of 87 and you get $145.

But how is that possible?

Glad you asked.

Market manipulations happen every day.

And in the case of precious metals, manipulations often get blown out of proportion…WAAAAYYYYY out of proportion.

A lot of this manipulation has to do with the futures markets…but that is another story for another time.

But futures manipulation has been the case for more than a decade in the precious metals.

In fact, not long ago the gold-silver ration was in the 120s.

 

But…and this is very VERY BIG BUTT…

 

The markets eventually experience what is called a reversion to the mean.

And In Plain English that means that historically everything “averages” out.

 

Silver Squeeze is ON

 

 

We don’t recommend trading in the futures markets because they are not for the faint of heart.

But you don’t need to be a rocket scientist to see that when the gold-silver ratio returns to historical averages near 20 (reversion to the mean) that a major Short Squeeze will dominate the Silver markets.

 

We believe the Silver Squeeze has already begun.

 

And that silver is gearing up for an historic run.

In the meantime, the futures Boyz are doing everything they can to contain the price of silver.

Because once they lose control, they will get run over by a stampeding herd of precious metal bulls.

This begs the question…

Got Silver???

 

Be sure to read our March newsletter to see what silver stocks we have been recommending and what the future looks like for them (HERE).

 

Share this with a friend…especially if they don’t like buying gold stocks.  They’ll thank YOU later.

 

And tell them:

 

We’re Not Just About Finance

But we use finance to give you hope.

Support always welcome via the digital tip jar.

 

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