SMM: spot silver rose to a 7-year high of $23.273 on Thursday, falling back to $22.727, down 1.12%, after several days of gains.
As silver hit a seven-year high in European trading on Wednesday, some investors began to expect silver to peak in the short term, causing spot silver to fall from $22.836 to $21.385 at one point. But with the start of the US trading session, spot silver accelerated again, breaking through $23 an ounce and hitting a seven-year high on Thursday.
In response, analysts say higher silver means that the imbalance between silver and gold has been corrected, which has historically been in the 50:1-80:1 range.
At the same time, the rise in silver is also positive for gold, because the rise of both gold and silver means the real arrival of the golden bull market, which also means that the collapse of the dollar is about to begin. because unprecedented easing weakens the dollar's position as a global reserve.
As gold recently hit a nine-year high, the short-term upward trend slowed, while silver's breakthrough upward trend pushed the gold-to-silver ratio to its lowest level since September 2019.
But from historical data, the gold-silver ratio usually trades in the 50:1-80:1 range, so the ratio still has a long way to go to fall from the current 80 times to the "average" level of 50 times.
Inflation caused by massive easing will continue to push up silver
So what does the silver breakthrough mean? Peter Schiff (Peter Schiff), a well-known financial analyst, said that US stocks rose, especially the NASDAQ continued to hit record highs, which led to the influx of money into the stock market. But most of the money went into a few stocks that benefited from the epidemic.
But Peter says these companies will still be affected by the epidemic because many of their customers are about to go bankrupt and just because people have access to your products doesn't mean they have spare money to buy yours.
Peter says what investors should do is to focus on gold, silver, gold stocks and silver stocks.
These are the scripts that should be played by the epidemic, as governments try to support everything and save everyone by creating inflation. But the best response to inflation is not to buy (Facebook), an overpriced social media company, but undervalued mining companies that are mining gold that the Fed cannot print and that have the potential to replace the dollar as the main reserve asset in the global financial system. "
The real trend of the past few days has been in the gold and silver markets, especially in the silver market. Mr Peter says he has been concerned about the potential of silver for some time. Despite the recent sharp rise in silver, Mr Peter said it was still a long way from what he had expected. "I think silver is about to come out much bigger than the current peak of 7%," he said.
Will put an end to the "historic double-topped form".
Peter believes that even if silver rises a lot, it will not stop there. Once silver breaks through $50, it will go further "substantially higher." Silver actually has a double top around $50. It first reached that level in 1980 and then again in 2011.
Fifty dollars is a high price level for silver. But Peter believes that silver will put an end to this double-topped form, because the fact that this form has been around for a long time means that you must be careful when it is broken. "
Silver has fallen sharply before. It is a wise choice to buy silver at a price of $11 or $12 in March. Peter said he bought some silver coins himself. Once $50 goes from resistance to support, it will be a huge support, he says. And it will provide some kind of launch pad for a sharp rise in silver prices. "
The rise of silver means the arrival of a really big bull market in gold.
The gold and silver ratio has been high in history. At one point, it exceeded 100 per cent in March and is now around 84:1, but it is still well above the historical average, which means silver is still undervalued relative to gold. 'He thinks we are starting to narrow the price gap between gold and silver, which is crucial for silver trading, 'Mr. Peter said.
Once the imbalance between gold and silver is repaired, the selling pressure on gold will disappear, but for silver, all selling pressure will disappear, because no one will short it any more, and investors will only choose to buy silver. so silver still has a long way to go. "
Peter said the silver breakthrough bodes well for gold. Because the market is divided on the fact that gold has entered a bull market, some people think that this is an unconfirmed fact, but those who do not believe in the gold bull market believe that without the participation of silver, it is impossible to confirm that gold will usher in a further rise. But with silver continuing to rise sharply recently, this disagreement should have been resolved, and there is more reason to believe that a bull market in gold has arrived.
The silver rally is a prelude to the collapse of the dollar
So what does the silver rally tell us? This is a prelude to the collapse of the dollar that Peter has long predicted. He said we didn't have much time.
The dollar could then fall below its recent bottom, and gold and silver could soar at any time. So this is really a race to get people out of the dollar.
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