Silver Declines 26% but SIL/SLV Ratio Has Already Bottomed

Silver declined by 26.33% today to $85.3133 per oz, but the Global X Silver Miners ETF (SIL)/iShares Silver Trust (SLV) Ratio gained by 19.25% to 1.25 after bottoming on Thursday at a new all-time low of 1.05, which means silver miners have already priced in a much larger decline in silver prices.

The 16-year average SIL/SLV Ratio is 1.83, which means silver miners are already priced for $58.28 per oz silver.

These ratios ALWAYS return to their means!

Silver can decline by 31.69% to $58.28 per oz and if silver miners stay even at their current price, the SIL/SLV Ratio would return to the 16-year average of 1.83.

From silver's new all-time high reached yesterday of $121.647 per oz it wouldn't be a surprise for silver to see a total decline of 52.09% to $58.28 per oz, but the odds are high that one year from now… silver stocks will be trading significantly higher… and the largest gaining silver stocks will be Highlander Silver (TSX: HSLV), Minaurum Silver (TSXV: MGG), and Contango ORE (CTGO).

Past performance is not an indicator of future returns. NIA is not an investment advisor. Always do your own research. NIA’s President has purchased 125,000 shares of HSLV and can buy or sell shares at any time. NIA’s President has purchased 5,000 shares of CTGO in the open market and intends to buy more shares. NIA has received compensation from CTGO of US$80,000 cash for a ten-month marketing contract. NIA is receiving compensation from MGG of US$100,000 cash for a twelve-month marketing contract and previously received US$60,000 cash for past marketing contracts which have since expired. This message is for informational and educational purposes only.