To The Moon

As the broader market pulls back, the safe-haven value of precious metals such as gold and silver is further emphasized.Silver in particular may be about to enter a multi-year up cycle . $Silver Main 2409(SImain)$ $Silver ETF(iShares)(SLV)$ $ SPDR Gold ETF(GLD)$

The main supports are the following

1. Heightened risk aversion has led to precious metals, with investors preferring to seek safe assets, which has provided support for precious metals such as gold and silver

2. The negative correlation with risky assets such as equities has increased, making precious metals more prominent as a diversifier in investment portfolios.

So is gold better, or is silver better?

In terms of volatility, silver is more volatile than gold because it has greater industrial demand.But there is a cyclical difference between the two.

Looking at the "gold/silver" price ratio from decades ago, silver looks cheap.So far this year, the price of gold is up about 19% and silver is up 27% this year, but compared to the price ratio of the two since 1990, silver is cheap.

1. Silver may be at the beginning of a long-term bull market.The silver market may be at the beginning of a multi-year bull market based on historical analysis of the Dow Jones/Gold ratio.It has been nearly six years since the Dow Jones/Gold ratio peaked in October 2018, and historically this point in time has typically heralded a significant rise in the price of silver.

2. Silver is undervalued relative to gold.Silver is currently undervalued relative to gold, which could mean more upside for silver.Historical data shows that every silver price peak has coincided with a low in the Dow Jones/Gold ratio [1].

3. Cyclical factors support silver's rise.Based on historical patterns, silver typically reaches significant highs approximately 8.5 years after the peak of the Dow Jones/Gold ratio.Considering the current market position, sustained and significant gains are likely to occur over the next few years.

4. In terms of supply and demand, there is a supply-demand gap in the silver market of around 5,000 tons.The supply-demand imbalance may drive silver prices higher.

5. In terms of economic sensitivity, silver is more sensitive to economic cycles and is likely to perform better in a well-grounded economy.Current economic conditions remain favorable, with inflation stabilizing to the downside, while gold is more influenced by risk aversion.