Three Reasons We’re Having a Silver Sale
Silver has dipped below $20 an ounce for the first time in two years. But given silver’s fundamentals, the current economic dynamics, and the trajectory of the Fed, silver appears very oversold.
For the next week, you can take advantage of the lowest silver spot price in years, and we’ll even sweeten the deal with free silver with qualifying orders.
There are three good reasons you should take advantage of silver on sale.
Three Key Reasons You Should Take Advantage of Discounted Silver!
1. The Silver-Gold Ratio Is at a 2-Year High — This Is Silver on Sale
Silver is very cheap relative to gold. The silver-gold ratio is currently over 90-1. That means it takes 90 ounces of silver to buy an ounce of gold. To put that into perspective, the ratio fell to 30-1 in 2011 and below 20-1 in 1979.
Historically, when the spread gets this wide, silver doesn’t just outperform gold, it goes on a massive run in a short period of time. Since January 2000, this has happened four times. As shown below, the snapback is swift and strong.
2. History Doesn’t Repeat, But It Often Rhymes
The chart below compares the price of silver to the last time the Federal Reserve lowered interest rates. The Fed started in July of 2007 before the financial crisis got going. With the two starting points of July 2007 and January 2020, the overlap is very close early on, with silver holding up slightly better this time around in the later consolidation phase. The next big move came about 2.5 years later. If history repeats, we could be less than 6 months away from an explosive move higher!
3. The Fed Is Throwing Up a Hail Mary
The Fed can talk tough, but it can’t actually fight inflation. The central bank simply can’t raise rates high enough to get ahead of the inflation curve. However, rate hikes will inevitably inflict major damage on the economy and drive us into a recession if the Fed continues along this path.
Rising interest rates are already causing big problems for a government buried in debt. In the past year, the federal government’s annual interest cost has increased from $323B to $423B. More concerning, the impacts of the recent 75bps hike and the upcoming 50-75bps hike are not even registering on this chart yet which is only updated through May!
This is very dangerous for the US Treasury. Interest cost will soon blow past $500B and then continue racing ahead. Can the Fed sit by and watch this happen? – No!
This is why the central bank will almost certainly reverse course sooner than anyone thinks. This is not something that plays out over 12-24 months. The impact is being seen now and will get stronger each and every month.
Silver Is On Sale, But It Won’t Be For Long!
The fundamental backdrop has never been stronger. The underlying data indicates that the snapback will come soon and potentially play out very quickly. This is a great opportunity to get silver at around $20 and some free silver to boot!
Don’t Miss Out!