Silver Price Suppression and Profiting from the Gold-to-Silver Ratio -- with David Moadel
welcome to looking at the markets with David Modell if you ever needed proof of
silver price suppression man this is this big as good a proof as you could
possibly want all right I'm looking right now at the this is kit code calm
the gold to silver ratio all right yes gold and silver are both selling at
bargain prices but for silver to be this much cheaper
compared to gold is just crazy when the gold to silver ratio reaches eighty
which it did a few months back that's already extreme right now it's in the
mid-80s we've got it here at I mean look at that it's reaching the mid-80s
according to kit code calm it doesn't do that very often and that's giving me at
least an indication that the forces or the powers that be are really
suppressing the price of silver for whatever reason they're letting gold at
least somewhat normalize while silver is just being pushed down the price price
pressure is crazy which doesn't make sense to me because silver has more
actual uses than gold of nothing against gold I'm talking about actual actually
being able to use it for industrial purposes silver actually has more uses
than gold and you can google that if you don't believe me but I believe in both
gold and silver as a store of value as an ancient form of money over five
thousand years of history so let's take a look at what the gold to silver ratio
normally is this goes back about a hundred years this is macro trends net
thanks to them for these charts and thanks to kit cocom for the other chart
they've got it right now it looks like yeah
85 or so mid-80s that is extreme that is extreme price price pressure on silver
compared to gold and so it looks like it's gone nearer or
a hundred or I mean close to a hundred a couple times in the past century or so
so it doesn't happen very often it could get to a hundred or close to it it is
possible but as you can see it doesn't get into the mid-80s very often I
believe this is an opportunity you could either just buy silver
outright or you could if you just want to play the ratio one way to play this
is to go long silver and short gold and that way you're not counting on silver
to go up necessarily you're just counting on the ratio to go down at some
point okay meaning you're if you go long silver short gold you're betting that
even if silver doesn't go up necessarily at least it'll go up compared or
relative to gold alright and so for you to win that bet
either silver would have to go up or gold would have to go down or both
relative to each other okay so that's one way to play it and believe me it's
not just going to keep going up and up forever it doesn't work like that could
it go up to nearly 100 it could but notice that the times that when it did
go up to nearly a hundred it came right back down talking about the gold to
silver ratio here alright so even if you lose out in the
short term this would be more of a long-term play if you want to do this
through ETFs I suppose you could instead of the physical stuff you could go let's
say a long SLV the ETF and short GLD or IAU you could do it through calls and
puts call spreads and put spreads that kind of thing there are ways to play it
or you know what the simpler longer term way of doing it is just to just get
yourself some physical silver and maybe sell some of your gold if you if you
have that that's just called rebalancing your portfolio your precious metals
holdings all right so I'm David Modell this is looking at the markets just
wanted to alert you on how extreme this has gotten
now the silver price suppression is going on it is in full effect at least
that's what I believe alright so if you like this video hey
why not give it a thumbs up and subscribe to my channel hit the
notification bell so you can receive the latest updates on my videos and leave a
comment what do you think is their silver price suppression going on is
this a time to buy silver and maybe even short gold if you just want to play the
ratio of the gold to silver ratio extremity going on right now alright
thanks a lot I appreciate it if you want more help you can email me anytime David
Modell at gmail.com thanks a lot I'll talk to you again soon