An expert recommends adding physical silver to your investment portfolio right now. Matt Badiali, the editor-in-chief and investment strategist at Banyanhill, gives a clear buy recommendation for silver as the price gap between gold and silver is at its extreme.
You need to own silver right now. Don't wait any longer, buy now. You may already own mining stocks, but you MUST own the metal itself.
What's interesting is not whether you're collecting quarter-dollar coins from the 1960s, scouring antique shops for inherited silver, or buying silver bullion ETFs... you need to own silver in one form or another right now!
Silver is on the rise. And this is just the prelude to the incredible rally that the metal is about to experience. The price ratio is now at its highest since 1991.
And every time we've seen this signal since 1990, it has ended with a two- to three-digit rise in the price of silver.
As shown in the chart below, silver is in the early stages of its bull market:
The gold to silver price ratio indicates how many ounces of silver are needed to buy one ounce of gold. The average value has been 68 ounces since 1990. When the ratio is around 80 or higher, the price ratio is at its extreme. Like it is right now. The price ratio is currently 89. It is completely off the rails.
Looking back and comparing previous peaks in the price ratio, my excitement is more understandable:
| Ratio High (Value) | Change in Silver Price | |
| 1 | February 22, 1991 (99) | +60% |
| 2 | March 3, 1995 (85) | +62% |
| 3 | May 30, 2003 (80) | +203% |
| 4 | October 10, 2008 (85) | +371% |
| 5 | February 26, 2016 (83) | +38% |
| (Source: Bloomberg) | ||
We see from the table that the peaks of the silver to gold price ratio seem to be over 80. After this, we see it hitting a bottom about 3 years later. The average appreciation of silver prices is 147%.
I wrote earlier in July about the gold to silver price ratio. I recommended that we buy either the iShares Silver Trust ETF (NYSE: SLV) or the leveraged VelocityShares 3x LongSilver exchange-traded note (Nasdaq: USLV). The iShares Silver ETF has risen 21%. The VelocityShares 3x ETN has risen 50%.
But this is just the beginning. This rally will gain momentum in 2020. When we look at silver trading in 2020, I expect it to be historically the largest. We could easily see it producing 200% or 300% from its current valuation like in the years 2003-2006 and 2008-2011.
That’s why we need to own silver today. It will be the best-performing metal of 2020.
Original English article: I RARELY POUND THE TABLE, BUT I NEED TO … BUY SILVER RIGHT NOW, Matt Badiali, Banyanhill Investing
