October may be the spooky season, but for silver, it is “opportunity season.” Silver prices continued to move higher today following the U.S. Dollar Index taking a hit.
Writing for Kitco, Jim Wycoff noted that, “here are some very recent near-term technical developments that are now suggesting the U.S. dollar index has put in a major top and the U.S. stock indexes have put in major bottoms.” This could be a sign that inflation is at its peak and Fed might soon be putting a pause on its aggressive rate hikes, eliminating a major headwind for silver and precious metals.
Earlier this month best selling author of ‘Rich Dad, Poor Dad’ Robert Kiyosaki tweeted “BUYING OPPORTUNITY: if FED continues raising interest rates U.S. $ will get stronger, causing gold, silver & Bitcoin prices to go lower. BUY more. When FED pivots and drops interest rates as England just did, you will smile while others cry.”
In subsequent tweets, Kiyosaki said that he believed the dollar’s strength to be temporary and that it could very easily follow the footsteps of the English Pound Sterling following a Fed pivot. He believes that silver could jump anywhere from $100 to $500 within this decade. The author also noted that during the 20th century the gold:silver ratio was at 47:1. It is currently 83:1, making silver a huge benefactor when that ratio regresses to the mean.
“Anything that can be printed, like a stock certificate, a bond, or a dollar, I don’t want it,” Kiyosaki noted. “I’m a hardcore gold, silver, oil, and food buff… I’m a hardcore hard assets person.”
Silver’s use as an industrial metal could also give it an edge over gold. Like gold, silver has utility as a store of value but it also is a critical ingredient to several technologies that are going to become increasingly important in the next few years. Silver is an essential component of solar panels, cell towers, and electric vehicles.
Investors looking for exposure to the metal can find it in the Sprott Physical Silver Trust (PSLV ).
