Disclaimer: Nothing in this blog post, or in any other post on this site, should be considered personal investment advice. It's all just for my own entertainment. And your entertainment, too, if you happen to be entertained by it. If you want financial advice, hire a financial advisor.
An ounce of silver will now set you back just over sixty bucks. New all-time high for the precious metal.
A barrel of oil, meanwhile, is currently around $58. You can buy a whole barrel of crude with just a single silver coin.
This ratio is, historically speaking, completely out of whack. The silver-to-oil ratio has only been more than one twice in recent decades. The last time was in the 1970s.
https://www.macrotrends.net/2612/silver-to-oil-ratio-historical-chart
My own portfolio is already a bit overweight in oil stocks, but I picked up some shares of Exxon this week anyway. I figured I might as well collect that dividend while I'm waiting to see if any capital gains happen as a result of this pricing imbalance.
Also of note on that chart is the thin gray line next to the 1970s spike. This silver/oil imbalance was the prelude to a brief recession. Just something to keep in mind for the coming months. Furthermore, it seems like a spike up is a prelude to a recession whereas a spike down looks like it might be a broader stock market "oversold" signal. I'd have to do a little more digging into the charts to be sure, though; this is just "at first glance" analysis.
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