The day that silver traders have been waiting for has arrived. On Wednesday, the price of silver dropped another 5 percent. As I write this, it is sitting at $18.55 an ounce. On Wednesday it hit a low that had not been seen in three years. Overall, the price of silver has declined by 34 percent this quarter. That is the largest quarterly move in the price of silver in more than 30 years. So what does all of this mean? It means that we are looking at a historic buying opportunity for those that are interested in silver. Yes, gold is undervalued right now as well, but it is absolutely ridiculous how low the price of silver is. At the moment, the price of gold is about 66 times higher than the price of silver is. But they come out of the ground at about a 9 to 1 ratio, and unlike gold, silver is used up in thousands of common consumer products. Those that want to invest in silver should be shouting for joy that prices have fallen this low.
If you have been waiting and waiting and waiting to “load the boat”, your moment has arrived.
Yes a bounce up to 22 is in the cards over the next 3 weeks BUT I am afraid that this decline in my humble opinion is not over! During the great bull market of the 70s when gold went from 35 to 800 and silver went from 1 to 50, there was a deep 50% pullback in gold in 1974. I am seeing a similar move in gold now as as gold has dropped from its high of 1956 in 2011 that could take it down 50% to under 1000 and if gold does drop to 978 in the next few months, silver could probably go down to 12.00 before a final bottom is in.