Gold to Silver Ratio Rising – The Final Silver Opportunity of The Century Setting Up?

The Gold to Silver Ratio tells us how many ounces of silver it takes to buy one ounce of gold.

With the GSR currently at 63, silver is steadily becoming cheaper when priced in gold.

As we move into the final years of the 18.6-year land cycle, we see the following pattern shown on the chart below, with the GSR marked in green: the ratio steadily declines, then surges during the crash, before falling away in a move seen only once every 20 years.

So far, we have seen the GSR steadily decline, alongside the recent strong move higher in the silver price, similar to the phase shown on the chart above in 2006.

We are now at the second stage, with the GSR appearing ready to spike higher. This should occur as land (blue) and stock (pink) markets move into a crash.

As cyclical expectations suggest the GSR will fall sharply after this coming rise, the spike that occurs this year amid a land and stock market crash may provide a rare opportunity for silver investors, one seen only once every 20 years.

What is even more compelling is that we are not only approaching the end of the 18.6-year land cycle, but also the end of a much larger 80-year socioeconomic cycle known as the Four Turnings. Each “Turning” lasts around 20 years and is marked by distinct generational archetypes and socioeconomic conditions.

Below, we can see the GSR (light blue) and the silver price (dark blue) overlaid across the last four turnings.

The chart shows that during the previous Fourth Turning, the GSR remained elevated within a range while the silver price consolidated for decades. During the First and Second Turnings, however, the GSR fell sharply and remained between 20 and 40 for extended periods.

As we approach the end of the current Fourth Turning, a period in which the GSR has remained elevated in a range and the silver price has spent decades consolidating, attention turns to the First and Second Turnings ahead. Over the next 40 years, the idea of a GSR above 50 may well become a thing of the past.

The current uptrend in the GSR, and the spike that may accompany a land and stock market crash, could mark the last time we see a genuinely elevated GSR before a much longer-term downtrend takes hold.

While the world panics amid a global stock and land market crash, silver investors may have the chance to take advantage of a rare long-term opportunity and position themselves for the decades ahead.