Source: Seeking Alpha
“Silver prices have been battered on the backdrop of a higher US dollar, higher US Treasury yields and Fed rate hikes. The key question one might ponder would be where silver prices will be heading going forward? A more dovish tone from the Fed will presumably lead to limited upside potential for the US dollar coupled with the fact the net speculators are already heavily long US dollar. Furthermore, considering the tailwinds from fiscal stimulus fades, US growth is likely to slow into 2019 and the comeback of twin deficit worries suggest that US dollar currency appreciation will likely to reverse. Hence, given the inverse relationship between the US dollar and precious metals prices. A weaker USD will bode well for precious metals specifically silver bullion moving forward….From a Gold/Silver Ratio perspective, silver at present looks attractive with the ratio currently standing at 86.93 all-time high as shown below. The ratio between the two metals shows how many ounces of silver it would take to buy one ounce of gold, currently standing at 86.93 all-time high. The all-time low ratio was 13.76 back in the Jan 1980. As the saying goes, what goes up must come down. Hence, the upside potential for the Gold/Silver Ratio seems limited and the bottom line is that the current ratio signals that silver remains significantly undervalued which deserves a second look from investors.”
The risk of loss in the trading of stocks, options, futures, forex, foreign equities, and bonds can be substantial and is not suitable for all investors. Trading on margin or the use of leverage is not suitable for all investors and losses exceeding your initial deposit is possible. Supporting documentation is available upon request. Trading futures, options on futures, and FX involves substantial risk of loss and is not suitable for all investors. Carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources and only risk capital should be used. Opinions, market data, and recommendations are subject to change at any time. The lower the margin used the higher the leverage and therefore increases your risk. Past performance is not necessarily indicative of future results.