Silver Plays Catch-up — Massive Gains Ahead!
Gold is one of the best performing commodities this year, up almost 12% year to date.
Meanwhile, its less lustrous precious metal cousin silver is up about 4% so far in 2019.
But something interesting happened when the calendar turned to July. Silver prices began soaring compared with gold.
Silver’s Massive Upside Revealed
Looking at the bigger picture, gold has gained about 20% from last year’s low. But I believe the yellow metal is on track to rally above $2,000 per ounce by the end of this year as central banks around the world ramp up printing money once again.
This would mean we could see further gains in gold up to 40% from here.
Silver, however, is poised for even bigger upside potential. After all, silver is viewed as a leveraged bet on gold prices. And when precious metals markets really heat up, silver typically plays catch-up to, and ultimately surpasses, gold.
Notice how silver prices often lag gold at the beginning of big precious metal rallies, as they did in 2004–05 and in 2009–10.
But also pay close attention to how about a year into the rally (green circles), silver catches up to and then surpasses the percentage gain in gold.
Proof From the Past
In 2011, silver outperformed gold by a whopping 350%. I see the same thing happening again soon as the precious metal rally that began last October gains steam.
And just as silver is a leveraged bet on gold, silver mining stocks offer you an even more lucrative leveraged bet on the price of silver.
That makes select silver mining stocks one of my favorite trades for the second half of 2019!
And we’ll cover these stocks more in depth in future issues.
Here’s to growing your wealth,
Chief Income Expert, Mike Burnick’s Wealth Watch