While silver is at a 12-year high, it remains one of the most undervalued metals in history compared to gold—the gold-to-silver ratio is still at 83!
Could this mean that the rally has further to go? Source: Tavi Costa, Crescat Capital, Bloomberg
Gold hits a new all-time high 👇
Source: Barchart
BREAKING: GOLD NOW MAKES UP A RECORD 31.5% OF RUSSIA'S TOTAL RESERVES.
Source: Make Gold great again on X
The gold / silver ratio is 83.5.
Since 1968, this ratio has spent only 10% of the time above current levels. Sometimes switching to silver didn't work (look at 1990). But in 1995, 2003, 2008 and 2018, switching paid off.
Despite silver prices being close to their highest levels in 13 years, the production from the world's two largest producers of the metal has barely changed.
Silver production is still at the SAME level it was back in 2010. This clearly reflects how constrained new supply remains. According to Tavi Costa, this is likely to continue given the limited capital being invested in developing new mines. Source. Bloomberg, Crescat Capital
😱 The shocking chart of the day: Too many goldilongs?😱
Momentum in gold remains powerful, but you are not alone being bullish gold here... The chart below shows CFTC net long minus short position in futures for the Managed Money category. Source: The Market Ear, JPM
Gold as the ultimate store of value?
Over the last decade, gold prices have more than DOUBLED, marking one of the best rallies in modern history. Over the last 5 years alone, gold is up 76% and on track to be the best-performing asset class of the year, excluding bitcoin. So why gold keeps rising? Ever-rising debt and money debasement seem to be the main culprits. Since the pandemic, US national #debt has soared by $12 trillion while the US dollar lost ~25% of its value. Source: The Kobeissi Letter, BofA
Russia may be poised to make a notable shift in its precious metals strategy, with silver potentially emerging as a key asset in the country’s expanding State Fund.
According to a report released by Interfax this week and cited by Bloomberg, Russia’s Draft Federal Budget outlines plans to significantly bolster its holdings in precious metals over the coming years. Notably, the budget includes plans to acquire gold, platinum, palladium, and, for the first time, silver. The inclusion of silver in the State Fund's acquisition strategy marks a departure from recent trends. While central banks around the globe, particularly Russia, have set records in gold purchases following international sanctions, silver has largely remained off their radar. This latest development suggests that silver’s role in Russia’s financial strategy may be evolving. Source: The Jerusalem Post
