Silver
Silver prices have gone parabolic over the past few weeks as the price of the metal has risen over 30% in just the past six weeks. Not only has the metal entered a near vertical rise, but its performance when compared to gold has been phenomenal. In fact, the ratio is now sitting above 20-year highs.
Many have speculated that the next bubble would be in gold, but could it be in silver instead? Many retail investors have recently begun flocking to silver and it is starting to become a water cooler discussion piece for even novice investors. While it’s possible that this move is still in the early stages of a primary bull market, the recent move is most likely unsustainable in the near term. The silver/gold ratio has not sustained this move for any length of time and silver is very stretched from its mean price right now.
Chasing silver at this point is a dangerous game and is vulnerable to steep declines with even just a mild pullback. If this is the beginning of a much stronger long-term trend, then there will be plenty of safer opportunities to jump on board.