NIA has just published two exclusive charts of the gold/silver ratio that you won't find anywhere else! One of NIA's charts shows the gold/silver ratio from 1901 through today along with how many standards of deviation the ratio is above or below its long-term average. NIA's second chart shows the gold/silver ratio from 1901 through today along with its historical highest and lowest 1st percentile, 5th percentile, 10th percentile, and 25th percentile along with its long-term median.
On March 12th, NIA suggested SLV December 2020 $15 call options at $1.44 as soon as the gold/silver ratio surpassed 100. We said it was a guaranteed sure way to earn a 500%-1,000% return because we knew it would be impossible for the gold/silver ratio to remain north of 100 for an extended period of time.
Previously, the gold/silver ratio peaked in 1939 at 101.25 and in 1991 at 101.76. On both occasions, it peaked at a level that was nearly 2.5 standard deviations above the long-term average of 50.65. On March 18th, the gold/silver ratio peaked at a new all-time high of 125.89, which was more than 3.5 standard deviations above the long-term average of 50.65. Today, the gold/silver ratio settled at 82.37, which is only 1.5 standard deviations above the long-term average of 50.65.
The gold/silver ratio has been at least 1 standard deviation above the long-term average of 50.65 for the last 1,189 consecutive days. Between June 18, 1990 and February 2, 1994, the gold/silver ratio was at least 1 standard deviation above the long-term average of 50.65 for 1,325 consecutive days. If history repeats itself, the gold/silver ratio will return to 71.48 on December 6th. Based on gold's settlement price today of $1,890 per oz it would equal a silver price of $26.44 per oz, which would price SLV at approximately $24.23 per share. If SLV hits $24.23 per share by year-end 2020, NIA's SLV call option suggestion will rise to at least $9.23 for a gain of 540.97% from NIA's suggestion price of $1.44.
Considering that gold is likely to make significant gains between now and year-end... a return to a gold/silver ratio of 71.48 by year-end will likely result in NIA's SLV call option suggestion finishing the year with a gain closer to 1,000%. NIA's SLV call option suggestion at its intraday high today of $6.66 was up by 362.5% since NIA's March 12th suggestion at $1.44.
The current gold/silver ratio of 82.37 still ranks among the top 10% of all historical gold/silver ratios from 1901 through today!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. This message is meant for informational and educational purposes only and does not provide investment advice.
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