On Tuesday we noted that the silver/gold ratio had broken down from it’s 6 month uptrend, and advised readers to consider swapping gold for silver.
In the 48 hours since, the gold/silver ratio has broken down even more severely, dropping another 5% Thursday alone to 55.43 to 1.
Along with today’s breakout past the 200 day moving averages for both gold and silver, the break-down in the long-term G/S ratio indicates the next leg in the 12 year secular bull market for gold and silver has begun.
Those who took our advice on Tuesday have already seen massive gains, and we suspect those gains are just beginning as we suspect the ratio could tighten to as little as 20-1 during this coming bull market rally.
The breakdown is even more evident on a 6 month chart
This looks like the real deal folks. Both gold and silver are now trading above their 200 day moving averages, and the gold/silver ratio has decidedly broken down out of its 6 month uptrend.
Time to consider STACKING THE SMACK in silver upon any significant correction.