Alexander Trigaux, Editor, GoldSilver
AUG 15, 2018
Silver is trading below $15 for the first time since April 2016.
As our analyst Jeff Clark has pointed out before, silver typically outperforms in the second half of the year. So this might be a great opportunity to purchase some on sale.
The pattern’s no guarantee: In 2016 it ended the year lower overall. However, it then when on to spend the balance of the time until now over $15, making it easy to take profits (and further sell down older, more expensive lots for the tax break).
We own silver for the long term, and are happy to reduce our base price by dollar-cost-averaging along the way. This seems like a great opportunity to do the same. The continuous rise of the stock market has us rebalancing and adding to our positions anyway.
The frosting on the cake? Today's plunge means that the gold/silver ratio, our favorite silver buy indicator, is now at 82. Invariably, when it has moved above 80 in the past, its marked a highly profitable time to buy silver.