Get Silver, Keep Your Gold

Like Bitcoin and altcoins, there’s a push-and-pull relationship that constantly goes on between gold and silver. For smart investors, it’s not a question of either/or, but of how much gold and how much silver you should keep.

If you’re not asking this question, then you’re missing out on the big picture that’s affecting all financial asset types. Irrespective of who’s in the White House, the government’s money printer will continue to go “brrr” and the dollar’s purchasing power will always trend toward zero.

This benefits precious metals holders everywhere, though it’s not easy to predict the exact timing of when gold will outperform or when silver will outperform. Moreover, it’s not a perfect inverse correlation as sometimes gold and silver will rally in tandem.

Nevertheless, it’s a good idea to keep an eye on the gold-to-silver ratio, which calculates the number of one-ounce silver bars it would take to purchase a one-ounce gold bar. Whenever the gold-to-silver ratio exceeds 100, this means gold is expensive relative to silver.

It doesn’t mean gold is expensive relative to anything else besides silver (stocks, bonds, cryptocurrency, etc.). So, don’t let a high gold-to-silver ratio convince you to abandon gold, which will still benefit from the reckless policy of the Federal Reserve and politicians in general.

Courtesy: @hajiyev_rashad

As you can see in the chart shown above, the gold-to-silver ratio surpassed 100 and even 125 during the COVID-19 crisis of 2020. This makes sense, since gold is perceived as a risk-off safety hedge while silver is seen as an industrial metal that thrives during better economic times.

The right end of the chart is speculative as it indicates where the gold-to-silver ratio might go in the near term. For the time being, however, it’s established that the ratio flew above 100 but is now falling below 100.

Silver outperforming doesn’t require bullish market sentiment, but it certainly doesn’t hurt. For instance, on Thursday the market was in a bullish mood after President Trump and Chinese President Xi Jinping reportedly had a productive phone call and restarted trade talks.

On that day, silver was up 3% while gold was down 1%. The big picture is still bright for both precious metals, though, with silver approaching $36 and gold easily maintaining the $3,300 level.

You can call it metals rotation or the silver “catch-up” trade if you want to, but there’s more to the story than meets the eye. In reality, the train is just leaving the station and gaining momentum for all types of metals-related assets.

Courtesy: @TaviCosta

Not only is silver breaking higher against the U.S. dollar and against gold, but silver junior miner stocks are breaking higher against silver bullion. The chart shown above indicates that there’s a whole lot more room to run as silver junior miners are deeply undervalued and underappreciated in 2025.

Certainly, investors will need to be patient with the silver miner trade. The chart is a multi-decade chart, and a price breakout can take years to play out in real time.

That’s not a bad thing, though, since a reversion to the mean would involve multi-bagger price moves for many mining stocks. This includes both gold and silver miners, though the silver miners are particularly ripe for a sharp rally.

And when silver continues to rise into the high $30s and then into the $40s, the junior miner stocks should provide powerful leverage to take advantage of. The idea, of course, isn’t to wait and take your positions after the price move is already accelerating; this will happen soon enough, and missing the move will only bring you disappointment instead of the wealth that you deserve.