Silver Catches Gold
From Silver Stock Investor: March 2024
I like to call silver the “Rodney Dangerfield” of precious metals: it just doesn’t get the respect gold does.
Why is that? Well first, gold is more valuable than silver for the same weight. In other words, it’s more concentrated wealth. That’s made gold the asset of kings and queens, and a top choice for jewelry.
But in part because of its lower per unit weight value, silver has been more practical as everyday money. It’s considered to have been responsible for a higher value of transactions throughout history. In other words, silver’s been daily money for about 5,000 years. Not even gold can say that.
What we do know is that silver follows gold, with a lag. But when it starts to catch up, it tends to outpace its more valuable cousin. This chart shows the last four main silver bull markets. We can clearly silver rise at the same time as gold, then catch up and generate even larger returns by the end of the bull.
Gold has been in a high consolidation range since 2020, and has been mostly above the $2,000 level
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