Precious Metals UPDATE: Gold Breaks Out – Will Silver be Next?
Gold and silver prices continue to push higher – both hit multi-year highs on Wednesday. According to Mike Maloney, a new uptrend in gold is underway, but silver’s performance has so far trailed gold’s. Mike looks at the historical price behavior between the two precious metals over the past six-plus years. Also, Mike explains why he is buying silver, not gold, in today’s market.
The Gold to Silver Ratio Begins New Downtrend?
Mikes plots the annual trading range of the gold price since 2013, when most traders indicate the bear market in precious metals began.
He reminds investors to note the dollar amount of change between the high and low each year.
Maloney shows the potential benefit of investing in silver as opposed to gold in past bull market. While gold tends to steal the headlines, silver tends to outperform gold in precious metal bull markets.
Mike explains why gold is the best performing asset this century and will continue to be. Maloney talks about the emotional rollercoaster investing in gold, and precious metals can sometimes be.
Gold’s Trading Range Provides Clues
Malones explains that gold’s trading range has shifted markedly higher in 2019. And that,
“Not only has the price broken above the flat range of the prior three years, you’ll also notice a series of higher lows, a very bullish indicator.”
Finally, Maloney looks at the bull market from the 1970s, which ended in 1980 and compared it to the bull market that began in the early 2000s.
Maloney concludes that,
“The current surge will undoubtedly take a breather at some point, but this big-picture view clearly shows a decisive shift in momentum, one that portends higher and higher prices.
This shift, however, has not yet taken place with silver.”
Gold is back above $1,500, and silver is above $17. If this momentum continues, we may be at the beginning of an epic bull market and new record highs.