The gold-silver ratio just hit extremes unseen since the depths of the 2008 financial crisis…
The ratio shows how many ounces of silver it takes to buy one ounce of gold.
Over millennia, the ratio sat around 16:1 (silver to 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.
Regular Daily readers know successful traders are “connoisseurs of extremes.” That’s because extremes always “revert to the mean.”
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.
Bottom line: Extremes like the current gold-silver ratio don’t come along often. This is one of the best opportunities in years for smart speculation in precious metals. If you’re interested in speculating here, our friends at Casey Research are the masters in this field.