Chart Master: Short silver, go long gold

Core Viewpoint - The recent spike in silver prices has reached extreme levels, prompting a recommendation to short silver and go long on gold due to the historical performance of these metals [2][7]. Group 1: Silver and Gold Price Dynamics - The ratio of gold to silver has significantly changed, with 1 ounce of gold buying 107 ounces of silver in April, dropping to 55 ounces recently, and closing at 59 ounces [3][5]. - The long-term average ratio since the 1970s is approximately 60, indicating that the current ratio has returned to this historical average [4]. Group 2: Historical Performance Analysis - Historical data shows that every time the gold-silver ratio has been this oversold since 1974, silver has underperformed gold, with silver prices declining on an absolute basis 3, 6, 9, and 12 months later in all instances except once [7]. - The analysis includes charts that depict the relative performance of gold to silver, highlighting the recent plunge and the key reversal in the ratio [5][6].