** SILVER UPTREND ** XAGUSD ** LONG **Since the start of this year silver prices have risen 10% versus the US dollar and 13% versus the Chinese yuan and the Indian rupee.
Despite the strong rise in silver prices, their overall performance has been rather disappointing.
Gold prices have considerably outperformed silver prices. As a result the gold/silver ratio has risen to new highs.
The deterioration on global growth and global trade has dampened silver prices however, recently there has been a catch-up.
Since mid-July there was a strong rise in silver prices, while gold prices barely moved. We think this was triggered by two developments. First, consumers in India wanted to buy silver before the new import tariffs became effective on 1 August. The import tariffs were raised from 10% to 12.5% for both gold and silver. Second, the gold/silver ratio moved to levels last seen in 1992.
This ratio has already been high for years but it was at extreme levels in mid-July, when the ratio hit 93, i.e. gold was 93x more expensive than silver. This looks to have been a clear opportunity to load up on silver.
Be the bunkerhunt BUY PHYSICAL SILVER and look to secure a long position with take profits set according.
