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Seeking Alpha/Steve Saville/7-14-2020
“We are expecting a modest recovery in economic confidence and a big increase in inflation expectations over the next 12 months, meaning that we are expecting the fundamental backdrop to shift in silver’s favor. As a result, we are intermediate-term bullish on silver relative to gold. We don’t have a specific target in mind, but, as mentioned in the 16th March Weekly Update when the gold/silver ratio was 105 and in upside blow-off mode, it isn’t a stretch to forecast that at some point over the next three years, the gold/silver ratio will trade in the 60s.” [More at the link.]
USAGOLD note: With gold at $1800, silver would need to trade at $26 to achieve a ratio in the 60s as Saville forecasts – so it still has considerable catching up to do. A number of top analysts have come out in favor of silver ownership over the past few weeks pointing to its undervaluation vis a vis gold and inflation expectations as the primary ownership incentives. The favored vehicle for silver ownership among USAGOLD clientele is one-ounce silver bullion coins like the ones pictured above.