Is it true that silver outperforms gold when precious metals rally?
Yes, despite silver being often referred to as “poor man’s gold”, silver has performed better than gold in five of the six previous precious metals bull markets
For example, the precious metals bull market of 1967-68 silver rallied 100% using the peaks and troughs prices. Gold rallied 40% during the same period.
“despite silver being often referred to as “poor man’s gold”, silver has performed better than gold in five of the six previous precious metals bull markets”
The 1970s experienced two precious metals rallies, the first one 1971-1974 saw gold rally 455% and silver prices also appreciated more than fourfold up 432% during the same period. The second 1970s precious metals rally came during 1976-1980 where gold prices appreciated 715%, meanwhile silver shot up almost 10-fold to 977%.
The mid eights, 1986 to 1987 also experienced a small precious metals rally with gold prices appreciating 78% and silver 94%.
A precious metal rally also played out in the early-mid nineties. Gold appreciated 28% from 1993 to 1995, meanwhile silver shot up 75%.
It is only in the millennium, the beginning of laptop computing, min computing, smartphones that silver outperforms gold by a significant margin.
For example, during 2001-2011gold appreciated more than 6-fold, up 636% but silver outperforms gold by almost two-fold and shot up 1106%.
“It is only in the millennium, the beginning of laptop computing, min computing, smartphones that silver outperforms gold by a significant margin”
During this period Apple, June 2007, Apple releases its first iPhone. There are 0.35 grams of silver and 0.034 grams of gold in every Iphone, according to the U.S. Geological Survey. So the Iphone generation has increased the demand for silver.
So, the current precious metals market 2015 and 2020, gold has appreciated 74% meanwhile silver is also up 45% during the same period.
Fear of currency debasement due to the central banks’ excessive currency creation to keep asset prices propped up is driving the current precious metals rally.
“the great gold rally, which we correctly forecasted one year ago, could be little bear compared to the current silver rally which could be in its infancy” – Win Investing
What has happened to the silver outperforms gold trend in this current precious metal rally?
Perhaps the true silver rally has yet to play out, bearing in mind that Fourth Industrial Revolution the internet of everything, smart devices could all see a boom in the demand for silver going forward.
So, the great gold rally, which we correctly forecasted one year ago, could be little bear compared to the current silver rally which could be in its infancy.
Silver outperforms gold because it too is viewed as a haven asset, moreover silver has industrial applications, particularly in the fourth industrial revolution, which builds on the third digital revolution
So, silver the poor man’s golds might also be an accessible path to wealth building.
While the gold bugs are ranting about the great gold rally perhaps the real rally, which has yet to play out is in silver.
See here – silver outperforms gold.