The past days were very special. It was days we never saw in the most recent history. It is the question if we are soon going to see something like this again.
Panic went from Wuhan to the world. People are harvesting food from supermarkets. Crisps and toilet paper are very popular around the world. Nursery houses are shutting down outdoor activities. The FED and other central banks keep pushing up the bubble to delay the bust. At the same time are Gold and Silver going up?
What we see happening in the precious metals markets is something we didn’t see for quite some time. Now are we going to see what type of investor you are built off? Are you ready to win, or ready to lose?
One of the reasons you need to hold Gold and Silver as your investment is the haven ro.e. Indeed are we seeing an increase in demand.
So why is the Gold market not skyrocket? Well that is for easy reasons. The Gold and Silver markets are relatively small. Especially compared to the associated futures markets. One reason Gold is pushed down pretty often is simply: some large positions are liquidated. The seller needs cash.
But if we look at how Gold should perform during a monetary crisis than it is exactly what we see happening right now. But the rations on the Gold and Silver ratio are far from normal. 1 Ounce of Gold gets you 116 Ounce of Silver. Telling me Silver is heavily undervalued.
Silver has never traded at such low levels. Silver has lost all contact with fundamentals. That is, exactly why Silver is one of the best things to jump in.
But here comes something interesting. There is a physical shortage in Silver. But not in Silver contracts.
We don’t need to fear missing out on the bottom. more and more signals say that the Silver miners are dictating more and more the prices. So the end of the madness might be here.