Silver prices on surged more than 4% on Wednesday, this highest one day return in three years and in the process breached the key psychological $17 level.
although I'm very bullish on Gold,
but I think the red headed step child, Silver will perform better than Gold over the next several years. The gold/silver ratio is simply the amount of silver it takes to purchase one ounce of gold. And when this ratio hits 80, it reverses.
Since the mid-1990s, the ration has hit 80 four times. And when it reversed, silver outperformed gold over the next several years.
The Smart Money is recognizing what’s going on. They just bought over 85, 000 of the September call options, $17 strike price in SLV.
SLV is the iShares Silver Trust which seeks to reflect the performance of the price of silver. However, I think SLV is just beginning.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.