Did you know there is such a thing called Gold/Silver ratio? It's a division ratio of Gold prices over Silver prices. This is a very important number for us to gauge when will the next inflation cycle is coming.....

For the past 40 years, the division ratio spreads from 32 to 100 range. Naturally, the median is at 65 points. The equation to this date simply means a faster running Silver prices whenever the Gold and Silver move in tandem during economic the cycle changes. For instance, the precious metals surge during inflation times and fall deeply during the recession.

When the inflation just begins, we will see the Gold/Silver ration narrows while Silver prices ascends faster than Gold prices. Likewise, the ratio widens when the duo metals recede during the economic meltdown.

During 2019, the Gold/Silver ratio shocked many traders when the number surged rapidly to new historical high at 128 level. That means the Gold and Silver prices are making the final recoil and might spring up for many folds in years to come. The reason is simple - There is more room for the ratio to fall and hence, higher potential for the precious metals to rocket!

This could be the first time you come across such content. However, don't overlook the possibility of Gold and Silver making new historical highs again in 2021 and 2022. All retracements now are good bottoms to pick the entries. Inversely, the Dollar will be facing a thrown-off in next few years.

Currently, we have seen the U.S. economy falling into doldrum after the impact of covid-19 crisis. FED chair has committed to super low interest rate for long long time until the next recovery. However, some analysts have predicted the possibility to sink into negative zone for FED fund rates in 2021. This will become a very deep recession for U.S. to recover in such case of negative yield for Dollar.

Checkout the current countries that have negative interest rates since many years ago, such as Japan, Denmark, Eurozone, Switzerland. They have not recovered all these years beside printing more fiat monies progressively.

Therefore, watch the Gold/Silver ratio closely in the next 12 months. You may profit handsomely from the Silver run. Good luck.

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