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Article by Commodity Trade Mantra
Are you fearful, or are you getting greedy?
That’s the question silver investors should be asking themselves now.
Novices have been panicking, while seasoned investors are salivating at the opportunities.
Silver has recently corrected by almost 8$ or 36% since peaking in early August. The drop to $22 brought it to less than half its all-time high.
Yet silver would still need to reach $175 to equal its inflation adjusted 1980 peak of $49.
I don’t think silver’s correction is quite over yet, but it’s getting closer to a trigger point.
Longer Term Indicator Points to Higher Silver Prices
The gold-silver ratio is a great longer-term indicator of silver’s value relative to gold, and to search for signs of what might lie ahead for the metal.
Looking back several decades, each time the ratio reaches 80 it tends to reverse. From there, silver typically outperforms gold as the ratio falls.
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