What if I told you there’s a trade that can give 300-500% returns in a 5-6 year time frame. The trade hasn’t failed in almost 50 years. The trigger to place the trade occurs a little over 6% of the time, so 94% of the time, we’re not in a position to place the trade. Today we are in that 6% timeframe. There has been around 3 years of time since 1971 where we are in a position like we are today. 3 years out of 48, hence just over 6%. I’m talking about the Gold:Silver ratio of course. More specifically the number of times its been above 82.5 – It’s above 85 right now. Could it go higher ? Yes, of course, but that doesn’t matter. The point is that it will fall much lower as we head into 2023. Gold will do well, but, as you can see from the figures in the chart below, exposure to Silver (and especially the small number of quality silver producers) will multiply your gains. I’ve included an image of the ratio going back to the start of our modern monetary era (post gold standard).

Both silver and gold continue to have their uses (industrial/commercial/jewellery). I see no fundamental reason why the GSR ‘range’ should alter dramatically in the next 10 years (current supercycle), therefore I believe it’s reasonable to expect the ratio to turn down imminently, with silver out-performing gold. As always, these are my own views, and you should always do your own due diligence.