Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

The Silver-Gold Ratio Is Out of Whack! Don’t Miss This Opportunity!

  by    0   0

The silver-gold ratio has spread to over 89-1. In non-technical terms, that’s way out of whack!

But what does this really mean?

In a nutshell, it means silver is on sale. And right now, SchiffGold has a great opportunity for you to take advantage of this bargain.

For a limited time, you can buy beautiful American Silver Eagle coins at the lowest prices in the US.

CLICK HERE FOR MORE INFORMATION

A silver gold ratio pushing 90-1 tells us that silver is way undervalued compared to gold. It currently takes more than 89 ounces of silver to buy one ounce of gold.

Put that number into some historical perspective.

Geologists estimate that there are approximately 19 ounces of silver for every ounce of gold in the earth’s crust, with a ratio of approximately 11.2 ounces of silver to each ounce of gold that has ever been mined.

In 1792, the gold/silver price ratio was fixed by law in the United States at 15:1. France mandated a ratio of 15.5:1 in 1803. Faced with the challenges of a bi-metallic monetary system with fixed exchange rates and the aftermath of a worldwide financial crisis, the US Congress passed the Coinage Act of 1873. Following the lead of other Western nations, including England, Portugal, Canada, and Germany, this act formally demonetized silver and established a gold standard for the United States.

With silver playing a smaller role as a monetary metal, the silver-gold ratio gradually spread. The modern average over the last century is around 40:1.

Silver is much more volatile than gold due to its industrial role, but at its core, it is still a monetary metal and it tends to track relatively consistently with gold over time. When gold goes up, it almost always takes silver with it.

As Peter Schiff pointed out last week, bond markets are flashing recession. But bond-buyers are making the wrong bet.

Now, the market is correct. We are going into recession and the Fed is going to respond to this recession the same way it responds to all recessions that it causes, and that is by doing more of what caused it, which is slashing interest rates back to zero. But what the markets, I think, have got wrong is the reaction. Because the recession we’re going to get this time is going to be stagflation. We are not going to have stable prices or a drop in the official inflation rate. Inflation is going to rise. And that means bond prices are going to fall. And that is going to exacerbate the severity of the next recession.”

If Peter is right, you are going to want to be holding precious metals. Gold and silver have historically provided a hedge against inflation and preserved wealth during economic crises.

And with silver on sale, this is the perfect time to add silver to your portfolio.

The fundamental supply and demand dynamics also look good for silver right now. Silver demand was up 4% and hit a three-year high in 2018, according to the latest report by the Silver Institute. Meanwhile, silver mine production fell for the third straight year, dropping 2% in 2018 to 855.7 million ounces. And it appears lagging mine production has continued into this year. The world’s largest primary silver producer reported a plunge in output in Q1 2019.

Analysts also project industrial demand for the white metal will continue to increase. According to the Silver Institute, continued investment in solar photovoltaic energy, should further boost global industrial demand for silver over the next decade and beyond. The institute projects roughly 820 million ounces of silver will be utilized by global solar energy applications alone through 2030. A recent study showed a “causal relationship” between the demand for solar energy and the price of silver.

Given the supply and demand dynamics, along with the prospects of a weakening dollar when the recession hits, it seems likely that gap will close.

Silver has hit an all-time high of $49 per ounce twice – in January 1980 and then again in April 2011. If you adjust that $49 high for inflation, you’re looking at a price of around $150 per ounce. In other words, silver has a long way to run up. As one analyst put it, “With the long-term downside potential of silver very low versus its current valuation, the risk/reward is one of the best investments on the planet.”

Don’t miss this opportunity to take advantage of silver on sale. Click HERE for more information on this limited-time sale on American Silver Eagles.


Related Posts

The Outlook for Gold in 2020 Remains Bullish

Gold had a strong year in 2019 and a World Gold Council report says the outlook for 2020 remains bullish. We expect that many of the global dynamics seeded over the past few years will remain generally supportive for gold in 2020.” Gold charted its best year since 2010 last year. The price increased by […]

READ MORE →

Spending Us Into Oblivion: Federal Budget Deficit Tops $1 Trillion in 2019 Calendar Year

The US federal government ran a budget deficit of over $1 trillion in the 2019 calendar year. It was the first budget deficit over $1 trillion in any calendar year since 2012 — in the midst of the Great Recession. The budget shortfall from January through December totaled $1.02 trillion, according to the latest report issued […]

READ MORE →

Holdings in Gold-Backed ETFs Grew 14% in 2019, Hit All-Time Highs

Net inflows of gold into gold-backed ETFs came in at 400.3 tons in 2019, according to data released by the World Gold Council. ETF gold holdings grew by 14% last year and finished at 2881.2 tons. Overall, global gold-backed assets under management grew by 37% in US dollars due to positive demand and an 18% […]

READ MORE →

Central Banks Continue “Remarkable” Gold-Buying Spree

Central banks continued their remarkable gold-buying spree in November and remain on pace to eclipse 2018’s near-record purchases. According to the latest numbers from the World Gold Council, central banks added 27.9 tons on a net-basis to official gold reserves in November. That brings the yearly total for 2018 with one month left to calculate […]

READ MORE →

A Shocking Numbers of Americans Live Paycheck to Paycheck

We’re told that this is the greatest economy in history. Stock markets are surging. Unemployment is low. And yet despite the good times, a shocking number of Americans live paycheck to paycheck. Several surveys cited by MarketWatch reveal the precarious financial situation many Americans find themselves in. This is less than ideal in an economy […]

READ MORE →

Comments are closed.

Call Now