While we normally don’t discuss this sector at Liberty Through Wealth…
Precious metal prices have been soaring as of late, and our friends at Monument Traders Alliance have a special announcement.
In today’s guest article, Head Fundamental Tactician Karim Rahemtulla breaks down why gold and silver are up and what many top investors are doing about it.
Plus, Karim also has a unique investment opportunity that allows investors to gain exposure to more than an ounce of gold – all for under $20.
Click here to learn more about this unique metal play.
– Nicole Labra, Senior Managing Editor
In a world of economic uncertainty, one sector is shining brighter than ever.
The precious metals market is experiencing a remarkable renaissance, with gold rocketing to astoundingly higher prices.
But what’s fueling this glittering boom?
There’s a number of reasons…
Starting with inflation, insane government debt, and geopolitical uncertainty.
But let’s not forget the bold move by the Federal Reserve on September 18.
With a decisive 50 basis point cut in interest rates, the Fed has ushered in a new cycle of monetary policy that’s set the stage for a precious metals revolution.
This seismic shift has investors scrambling to reassess their portfolios, with non-yielding assets like gold and silver suddenly gleaming with newfound appeal.
Insights from the Natural Resource Sector
This summer, I attended a conference in Boca Raton, Florida, organized by Rick Rule – a prominent figure in the natural resource sector.
The event featured presentations by CEOs of top mining companies worldwide, providing valuable insights into the industry.
The consensus among these experts suggests that we are currently amid a multi-year bull market for precious metals.
Understanding the Gold-Silver Ratio
While gold is receiving significant attention due to its status as a safe-haven asset during times of geopolitical uncertainty and inflation, silver also presents an interesting investment opportunity.
One way to analyze the relationship between these two metals is through the gold-silver ratio.
The gold-silver ratio is a measure of the relative value of gold compared to silver. It’s calculated by dividing the current price of gold by the price of silver. This ratio tells us how many ounces of silver are equivalent in value to one ounce of gold.
Using the current prices (as I write):
Gold-Silver Ratio = $2,672 / $32.75 ≈ 81.59
This means that currently, it takes about 81.59 ounces of silver to equal the value of one ounce of gold.
What It Means for Investors…
- High ratio (e.g., 81.6): Indicates that gold is relatively expensive compared to silver. Historically, ratios between 30 to 40 have signaled bull markets for silver, suggesting potential for silver’s price to increase.
- Low ratio: Suggests that gold is relatively inexpensive compared to silver, potentially signaling an opportunity to invest in gold.
Historical Context and Market Dynamics
Historically, the gold-silver ratio has fluctuated widely. In ancient times, it was often fixed by governments at ratios like 15:1 or 16:1.
Today, it varies based on market supply and demand.
The ratio can reflect market sentiment and economic conditions. A rising ratio typically indicates that gold is outperforming silver, often seen during times of economic uncertainty when investors flock to gold as a safe haven.
Conversely, a falling ratio suggests silver is performing better, which can occur during periods of economic stability and industrial growth due to silver’s wider industrial applications.
Potential Investment Strategies in the Current Climate
Given that the current gold-silver ratio is around 81.59, it’s notably higher than the historical bull market range of 30 to 40. This suggests a potential opportunity in the silver market.
If the ratio were to revert towards its historical average, it could imply significant upside potential for silver prices.
Some investors use the gold-silver ratio as a basis for trading strategies.
When the ratio is historically high, as it is now, some might consider buying silver and selling gold, anticipating that the ratio will eventually decrease.
While both gold and silver are showing strength in the current economic environment, the gold-silver ratio suggests that silver might have more room for growth.
And while silver is attractive at these levels, I have discovered a more urgent developing situation where you could potentially own gold for under $20 per ounce.
Considering the gold bull market is in full swing, with prices reaching $2,670 per ounce…
There’s a unique investment opportunity you need to know about…
Imagine gaining exposure to more than an ounce of gold for under $20.
This isn’t just another mining stock – it’s potentially the single greatest mining stock in history.
Here’s why…
- It represents more than an ounce of gold per share
- It has historically outperformed gold by 10X
- And it’s the largest undeveloped gold project in the world.
Don’t miss out on what could be the biggest gold rally of the century.
The time to act is now, before gold prices potentially soar even higher.
To learn more about this extraordinary gold investment opportunity and how you can get started with less than $20, click the link below to hear more about it.
Click here to learn more about this opportunity.
