Submitted by QTR's Fringe Finance
I’m always keeping an eye on gold - my favorite investment for nearly a decade now - as my readers have known for years. But also, let’s not forget silver: it’s the “gold” for the retail investor and for the mom & pop. I think silver’s next run higher will be its best in history, fueled by more retail exposure now than ever, and a favorable gold-to-silver ratio.
As a primer, retail investors favor silver over gold primarily due to its affordability, growth potential, industrial demand, and perceived market suppression.
Silver is significantly cheaper than gold, allowing smaller investors to accumulate more without a large financial commitment. This makes it easier to trade in smaller increments, making it a practical choice for those looking to gradually build wealth.
Silver also tends to be more volatile, meaning it has greater potential for short-term gains compared to gold. While this comes with increased risk, many investors see this price movement as an opportunity.
Overall, silver is attractive to retail investors because it is more accessible, has industrial backing, offers higher price swings, and is seen as a challenge to Wall Street’s control over commodities. While gold remains the traditional safe haven, silver is often viewed as the more dynamic and potentially undervalued alternative.
Silver was also the target of retail several years ago, and so has renewed focus on it in ways that it didn’t in years prior. Remember - the Silver Squeeze of early 2021 was a retail investor-driven attempt, largely fueled by Reddit’s WallStreetBets (WSB), to push silver prices higher by mass-buying silver, ETFs like SLV, and mining stocks.
Inspired by the GameStop short squeeze, traders believed major banks were suppressing silver prices and aimed to trigger a short squeeze.
Silver briefly surged nearly 10% to an eight-year high, but unlike GameStop, the market was too large for retail investors to control. Some WSB members then distanced themselves, suspecting institutional interests were pushing the silver narrative as a distraction.
Despite short-lived gains, the Silver Squeeze highlighted retail investors’ growing influence and it’ll keep silver in people’s memory and on their minds moreso on its next major bull run than it ever has been.
With that in mind, my friend and favorite economist Peter Schiff over at Schiffgold makes the case as to why the gold-to-silver ratio is now, once again, worth paying attention to.
Gold has reached new all-time highs, and the gold-to-silver ratio now exceeds 90:1. Such a high ratio has often signaled an impending breakout for silver prices. It indicates that silver could be undervalued, and we may be on the verge of a major price surge. Sometimes, if you miss a price run-up for gold, you can....(READ THIS FULL REPORT HERE).
