SILVER SOARS: We wrote it… did you buy it?

The gold-silver ratio is crashing… just as we said it would.

Over the weekend, silver spiked to over $21 per ounce. That sealed silver’s place as the best-performing asset of the first half of 2016. The metal rose 38.25% in the first six months of the year.

Now, we don’t have a crystal ball… but one simple indicator let us know silver was on the cusp of a major upside breakout…

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Longtime Daily readers know great traders are “connoisseurs of extremes.” That means they respect a fundamental law of nature: reversion to the mean.

[Whenever any item—from the price of American homes to the weight of newborn baby girls—diverges from its long-term average (mean), it will—sooner or later—revert to the mean. And the further an item moves away from its mean, the more likely it is to return… with gusto.]

Knowing this, the signs of a major surge in silver were too extreme to ignore. Here’s what we wrote in the April 6 Daily:

Over millennia, the ratio of silver to gold sat around 16:1 (it took 16 ounces of silver to equal one ounce of gold). But as governments demonetized silver, the ratio slid to as much as 100:1. In October 2008—when markets thought the world was ending—it took about 84 ounces of silver to buy one ounce of gold. That was another extreme valuation. But then the ratio snapped back to 32:1 in just 30 months. Silver’s price rocketed about 500% higher over that time. Today it takes over 81 ounces of silver to buy one ounce of gold… another extreme setup. Either the silver price must rise or the gold price must fall for the ratio to return to the mean. Uncertainty still clouds global markets… and that’s a bullish tailwind for gold. It suggests silver may be ready to catch up to gold—soon.

Today, the gold-silver ratio has plunged to 65:1. Readers who took our silver recommendation are sitting on double-digit gains in under three months (and triple-digit wins if they purchased select silver-mining shares).

Bottom line: The breakdown in the gold-silver ratio still has a long way to run. Silver speculators still stand to enjoy triple-digit gains from here. But the perfect opportunity to buy at the ratio’s extremes has passed…

Fortunately another extreme “reversion to the mean” setup is presenting itself right now. It’s in a related cheap, hated market that’s just entered an early uptrend. Learn more about it in our next item… from my former Stansberry Research colleague Steve Sjuggerud.