Silver Leads into Upcoming Daily Cycle: A DCA Opportunity for Long-Term Investors

Key Takeaways

• The silver daily cycle low is due between 1 and 9 June, with gold’s window running 3 to 11 June, presenting a potential dollar-cost-averaging opportunity for long-term investors.
• Silver has shown relative strength entering the current cycle window, putting in an uptrend while gold has moved below its daily cycle low.
• The Gold-to-Silver Ratio historically spikes into cycle lows before reversing, with silver tending to lead the recovery.
• A GSR above 50 at a daily cycle low timeframe has historically offered attractive long-term DCA entry points for silver investors building positions across multiple cycles.

The silver daily cycle low is due between 1 and 9 June, with gold due between 3 and 11 June. As we are currently in that window, long-term investors are eyeing high-value dollar-cost-average entries.

It is noteworthy that while silver put in an earlier low, leading the way out of the previous daily cycle, it has also shown relative strength compared to gold, pointing towards potential outperformance in the upcoming daily cycle.

While gold has put in a downtrend over the current daily cycle, moving below the daily cycle low, silver has put in an uptrend with the daily cycle intact.

While the Gold-to-Silver Ratio will generally spike into daily, weekly and macro cycle lows (due to silver’s volatility being greater than gold’s), the initial move out of the cycle low tends to see this reverse, with the GSR falling off. In environments where silver outperforms, this GSR pullback can be quite significant.

While the daily cycle could always resolve to lower prices (as cycles predict time, not price), buying in at the daily cycle low timeframe allows long-term investors of both gold and silver to achieve the best possible average buy price over the long term, with a sound and simple dollar-cost-averaging strategy.

For silver investors in particular, an important number for the GSR is 50. A GSR above 50 at a daily cycle low timeframe provides valuable dollar-cost-average entry opportunities for long-term stacks held across multiple cycles.

This article is general information only and does not constitute financial advice. Past performance is not indicative of future results. Always conduct your own research or consult a licensed financial adviser before making investment decisions.