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Summary
➡ The article discusses a pattern in technical analysis called a cup and handle, which predicts the rise in the value of gold. It explains that the value of gold could reach over $4000, according to this pattern. The article also mentions a tool called a Fibonacci extension, which is used to predict future price levels. Lastly, it highlights that silver often follows gold’s trends, suggesting that silver prices could also rise significantly.
➡ The article discusses the bullish outlook for silver, predicting a significant rise in its value. It explains that silver’s technical patterns, such as the bull flag, suggest a strong upward trend. The article also highlights the increasing industrial demand for silver, especially in solar panels and electric vehicles, which is outpacing supply. This, combined with the fact that silver is consumed rather than hoarded like gold, suggests a potential breakout in silver prices.
➡ The article discusses the current trends in the gold, silver, and platinum markets. It suggests that gold and silver may experience a slight decrease in value due to overbuying, but they are still in a bullish uptrend with potential for significant growth in the future. The article also highlights a potential deficit in the silver supply, which could lead to increased prices. Lastly, it suggests that platinum is currently undervalued compared to gold and silver, and could be a good investment opportunity.
➡ Steve Barton offers market summaries and a special newsletter on his website, Steve Barton money.com. Here, he shares the stocks he’s buying and selling, along with instant updates on his trades.
Transcript
So I think that we’re going to see the same thing here in the S P 500 in the NASDAQ. Basically think of what is your average everyday investor kind of blindly putting his, his 401k into. It’s these ones. And I, I think he’s pretty. The stock market is standing on the. You’re watching Cliff Silver news table sees the ground crumbling beneath their feet. A rare RSI divergence is flashing the same kind of warning signal that has preceded every major crash in modern history. And this time, the stakes are even higher. Analysts are calling it the rug pull of a lifetime, a setup where overleveraged retail investors could be blindsided overnight.
But here’s the While the crowd panics as their portfolios bleed red, silver is preparing for the opposite move. Gold has already blasted through, all resistance, breaking out in a way that signals the precious metals bull market is just beginning. And when gold runs, silver doesn’t just follow, it erupts. With no resistance above $50, silver could ignite into a vertical rally, sending shockwaves through Wall street as it charges toward $200. The writing is on the wall, the pressure is building. And the question is simple. Will you be ready when the detonation begins? The S&P 500 here and we can all take a look together and I’ll show you what I’m seeing on the charts.
And so basically, so we had, right over here, we had the, what we call the liberation day sell off, right? This was when Trump came out with all of his, with his, with his chalkboard with all the tariffs, you know, and just had a massive sell off in the market. And then we had this pretty nice run up here. Well, nice if you were invested in it all the way up to where we are now, just, just around 6,500. And I can’t help but notice there’s a trend line right here that it looked to me like we were finally having the breakdown that you’re talking about right here.
That was on Tuesday of last week and it was a false breakdown. It broke back up and now we are hitting on new nominal all time highs. But you can’t help but notice this kind of wedge pattern here, right? And when you get like, like a triangle like wedge pattern like that, I like to think of it like a, like a pinball in, in a pinball machine, right? It kind of bounces back and forth and then boom, resolves one way, usually violently one way or the other. And when we look at macro, what’s going on with the economy I gotta believe that this is overvalued.
If I forget macro and I just look at the charts here. Let me get rid of this bottom trend line and now just focus on the price right here of this upward channel trend line right here. Right. And you can see that the price is gradually getting higher. Now this purple and yellow line that you see down here, that’s called the RSI and that stands for Relative Strength Index. And the way I look at that is I look at that as kind of a forecaster of what’s going to happen in the future. And what we have here is some divergence.
So basically, as price is moving higher, the RSI is kind of consecutively moving lower. So we can see the. The warning signs across the stock market aren’t subtle anymore, they’re glaring. The S&P 500 and Nasdaq pushed to euphoric highs on the back of AI mania. But beneath the surface, the foundation is rotting. Market breadth has collapsed, with just a handful of mega cap tech names dragging the indices higher while the rest of the market stalls or rolls over. Morgan Stanley has already cautioned that equity risk premiums are at their lowest in two decades, meaning investors are taking on maximum risk for minimal reward.
Goldman Sachs is warning about extreme concentration with systemic fragility reaching a breaking point. And the numbers don’t lie. The Shiller Cape ratio on the S and p is north of 33, nearly double its historic average, while the NASDAQ is priced at over 28 times earnings. These aren’t valuations built on stability, they’re built on a bubble. The setup is eerily similar to every major top in history. Unsustainable euphoria followed by sudden collapse. And when that collapse comes, trillions in capital won’t just vanish, it will flee in search of safety. Historically, that safety has been found in hard assets, with gold leading the charge and silver inevitably following with far greater ferocity.
Price is here. RSI is really high. If I hover over it and look at this purple number over there, we can see that that is a number of 76. And then we go to the next hump over here and the rsi is now 67. And then we go to the next one over here and now The RSI is 64. And then when we go to where it is today, it’s 62. So although the price is going up, what it’s forecasting is, it’s forecasting that it’s going to go down. So I would expect the S&P 500 to be rolling over Here, when you time that and look historically at the month of September, for whatever reason, September usually ends up being a negative month.
And more often than not, in the second half of the month is worse than the first half. So if we follow history and if this is accurate, which it usually is, then I think we’re running out of buyers. And you can see that here, these are volume bars right here. So as time as each of these last four days has gone on, there’s been fewer and fewer buyers. So there’s fewer buyers running out and more sellers. And so I think we’re going to see a rollover here pretty soon. Here’s the cues. This is like the nasdaq, so think of it as like technology, right? Tech stocks.
We’re seeing a similar thing. You can see the price action up here is kind of going up now. We’re starting to level out. We got a little bit of a double top here, which in technical analysis is oftentimes forecasting a top. We have a top here and a top there. Almost exactly the same price. And if we look down what we just learned about the rsi, you can see that the RSI is making lower highs, right? So hovering over here, we have an RSI of 73. And then over here we got one of 68. And then over today we got one of 60.
So I think that we’re gonna see the same thing here in the S&P 500 in the NASDAQ, basically. Think of what is your average everyday investor kind of blindly putting his 401k into. It’s these ones. And I think he’s pretty close to getting a rug pull. Employment numbers haven’t been great. And. And generally speaking, when people are losing their job, the last thing on their mind is how their portfolio is doing. What they’re doing is they’re selling their portfolio so that they can pay the bills. First and foremost on their mind is putting food on the table, paying the mortgage and the electric bill.
So that would kind of go in line with that. Another one that I’m seeing here is the dxy, so the dollar. So this has kind of been in a general downtrend. This is going back to the 60s. It’s been in a general downtrend for a while now. We do have a bit of a kind of an inflection point here. It has started a trend up. And this parallel channel right here seems to be pretty accurate. I’m of the mind, I’m kind of split on this. Does the dollar get cheaper here? And break this pattern and move to the downside? Or is the average everyday person going to panic when they start to see this run to cash? And if that’s the case, then this is going to bounce up and we may see a little correction in our, in our commodities in the immediate term, but I don’t know, I’m betting long term, I think this is going to, going to get weaker.
Certainly. September has always carried a dark reputation on Wall street and this year is proving why. After the summer rally fizzled out, volatility has roared back to life, with traders bracing for the infamous September effect. Historically, this is the month when markets unravel. And analysts from Reuters to Bloomberg are already warning of a pullback. Retail investors who piled in during the AI driven euphoria are now the most exposed margin. Debt is stretched, speculative options trading is rampant, and confidence is dangerously fragile. When the cracks widen, the rug pull won’t just shake portfolios, it will shatter sentiment.
And in that chaos, capital doesn’t sit idle, it seeks refuge. And time and again, that refuge is found in the metals. Panic has a way of redirecting flows at lightning speed, with gold moving first and silver charging behind like a freight train. The setup is almost mechanical. As equities bleed, safe havens absorb the shock. And silver, with its smaller market size and higher volatility, becomes the explosive release valve for fleeing wealth. Okay, here’s the long term gold chart. We’re looking at the monthly rate here and basically we were all right, it happened, we had the breakout.
You know, we’re talking forever. When we’re down here in the 2000s, when is this ever going to come? And this is a really neat pattern in technical analysis. This is called a cup and handle. So we’ve got the cup forming right here. We have the handle and then now we have the breakout. And you can measure how far up these are going to go with some simple little tools. And you just take your, your tool here from the bottom of the cup to the top right side of the cup and we get about $1,000. And then if you extend that up to the breakout, you can see that we’ve exceeded that, right? It went up to 3,100 and beyond.
So that’s the first target of a cup and handle. Now the next target of a cup and handle, that was the value target and we can do what’s called a logarithmic target. So basically all you’re at all you’re saying is you’re just doing a percentage move. So 99.94. We’ll call it 100% move. All right. And we take that from the breakout right here and on up and go up to 100%. And that would give us an upside target of north of 4000 on the logarithmic target of gold. So I think that’s one of our next targets that we’re going to see in gold.
Another way you could do it is a tool called a Fibonacci extension. Now all Fibonacci is is it’s, it’s, it’s a mathematical formula that’s found in nature by the guy that discovered it. And it’s found in seashells, it’s found in honeycombs, on honeybees and all sorts of stuff. And it’s can be found in technical analysis on stock charts. So if we run the Fibonacci extension now this is a long term projection here and basically we’re just taking the $250 spot price of gold down here from back in like 1999, the turn of the century. And we run it up to the high of 2011 and then back down to the low of 2015 and it puts this projection out and each one of these levels here, 38.2%, 50%, 61.8, 78.6.
And you can see as we scroll through here, let me go to the weekly and maybe it’ll be a little more evident. And you can see that there are some little hiccups along each one of these lines. So the 38.2% retracement. See how there’s price action right down there. The 50% retracement. This is not a Fibonacci level, but for some reason it works in stock charts. The 61.8%. Just before we get going, we just launched the official silver news daily telegram. To kick things off, we’re running a 10 ounce silver giveaway. Yes, real physical silver. Not a voucher, not digital credits, actual bullion.
This telegram will be our new home for real time silver discussions, market insights, collection picks and everything. Precious metals. It’s where the community truly comes alive. Here’s how to enter the 10 ounce silver giveaway. Be subscribed to Silver News daily on YouTube. Turn on the notification bell. Comment 10 ounce giveaway on three separate videos. Be an active member of the telegram group and say hi. Once we hit 500 active Telegram members, we’ll pick one lucky winner to receive 10 ounces of silver shipped directly to you. So get in early, stay active. Gold has already fired the opening shot in this historic shift after years of grinding sideways near $2,100, it finally broke free in 2024, blasting through resistance and never looking back.
By the summer of 2025, gold was consolidating between $3,200 and $3,400, building a textbook bull flag pattern that only deepened the pressure. Then came the breakout above $3,400. And suddenly momentum ignited, carrying prices past $3,600 and aiming straight for $4,000. Analysts at bank of America and Citi are calling this the most important move in a generation, citing central bank buying and global de dollarization as unstoppable Drivers technicals confirm it too. The cup and handle formation stretching back more than a decade, has resolved to the upside, projecting levels we’ve never seen before. And here’s why it matters.
Gold is the locomotive of the precious metals complex. When it accelerates, it pulls silver with it. The last two times gold broke into uncharted territory, silver didn’t just tag along, it detonated, outperforming gold by multiples. And right now, gold’s breakout is the spark, but silver is the powder keg waiting to ignite percent. Now, this one is very accurate when it comes to technical analysis. And we can see that this is where we had this triple top that finally broke out right there. Then you move on to the next one, the 78.6, and then you move on to the next one.
And this would be the 100% move. And it’s not a coincidence that we have some pauses here and some price action along these levels so we can use this same tool to project into the future what the next price levels are going to be. Right? So we look right here and we had a lot of price action around 3400. That was the one where it was just consolidating sideways, you know, kind of forming that bull flag, bullish consolidation. And we just broke out of that recently in the last couple of weeks. So the next level I’m looking at up here is the green line.
And when I got onto the weeds in this and put it on the exact dollar amounts down in 2000 and then up in 2011 and then 2015, the number I came up with was 3751. So that’s the price target I’m going to look for and expect that there’s probably going to be some bullish consolidation or at least a hiccup in, in, in the action of the price once we get up to that level. Now, once we get up there, we could hit and then maybe by then the, the dollar has, you know, the economy’s kind of going into the toilet.
Your average everyday investor is going to look to, you know, probably move into cash and maybe they move into that. The dollar gets a little bit stronger, which, you know, it takes few of those dollars to buy gold and it drives the price down a little bit. We got to remember that, you know, just us watching this channel, like, we get it. But when you look at like, you know, it’s like 1 out of 200Americans has anything in precious metals, and that’s even including shares in like, you know, Barrick gold or something, right? So you gotta look at it like, you know, most people, I think, are going to run to the air quotes, safety of the dollar, and that could drive this down a little bit.
But that’s the next level I’m looking at is basically 3750. And then if we go beyond that, there’s other Fibonacci levels here too, 4400. And then we kind of get into the clouds here, almost 5,500. You know, you could look at different levels, try to get them to line up like the logarithmic target of just north of 4,000 that we did with the cup and handle. I kind of like to look at all of these and it just gives you an idea of what your next target is and possibly where you could take some profits. Silver has always been gold’s wilder twin, lagging at first before erupting with violent force once the momentum takes hold.
History tells the story clearly. When gold surged in 1980, silver didn’t just mirror the move. It slingshotted from under $6 to nearly $50 in a matter of months. In 2011, as gold broke through $1900, silver once again stole the spotlight, rocketing from $9 to almost $50, handing investors gains that dwarfed gold’s rise. This is the rhythm of the metals market. Gold leads, silver outperforms. The reason is simple. Silver is far smaller, far more thinly traded. And once the herd piles in, there’s nowhere for the price to go but straight up. Right now, we’re staring at the same setup all over again.
Gold’s breakout is already validated. But silver hasn’t even cleared its all time high of $50 yet. That means the entire rally is still in front of it. And when the dam finally breaks, silver doesn’t climb politely. It explodes with rallies so fast and brutal that latecomers are left stunned and sidelined. Okay, so I’ll start with. And this is what I Do on my show is I like putting in these like red, yellow and green lines is kind of like, like, hey, if you want a little bit, here’s a nice little spot to maybe accumulate some. And if you want a little more, here’s another spot.
And if you want a lot, this is what I call the back up the truck moment. Right. So I see like downside risk as far as like, you know, a nice place to enter is around 38. I might need to move that up a little bit, probably to 39. Now that we’ve got some more information here. After that, I like 35 and then 32.50. Now as far as I don’t really see a. Let me zoom way out here on the chart. And we will go to the monthly and go to this long term pattern like you’re seeing here.
This is a very, very, very bullish looking chart as far as like, technically, is this a cup and handle? I’m a little remiss to call this a cup and handle. It does look like one, right? I mean, we’ve got this massive cup formation here and then another massive cup formation here. And you could say that, okay, here’s a cup and this is the handle. When I look at these things, I like to place bets that are 60% or more. And one of the stipulations with a cup and handle pattern is when you have the run up in the cup.
So just like we drew the initial cup right here and you run a Fibonacci retracement on this, you don’t want the handle to go lower than this orange line right here, which is a 38.2% retracement. You don’t want it to go lower than that because then your certitude goes a little down. Like maybe if you got this perfect cup right here and the handle went down to the 38.2 and then started to go up, you’re like, wow, 80% of the time this works out and you get another moonshot like we got in gold, right? It can go down to the 50% retracement.
But if it goes down below that, I look at like the odds of this working out is getting less and less. Now, that being said, this is still a really, really bullish looking chart. I just personally wouldn’t call it a cup and handle. So as far as what I’m seeing on this, if I run some of the same fibonacci extensions just like we did with gold, Let me go to the weekly here to kind of Clean it up a little bit and I’m going to take this last low right here and I’m going to go up to the high and then bring it down right here and we can get some extension tools on this one.
So we’re going to go here, we’ll go up to the previous high right up there and then down here and extend it over and we could see that some of the targets here. The next one that I’m really. Silver’s technicals are lining up like a coiled spring. In May 2025, it finally shattered the decade long wall of resistance at $30, unleashing a rally that tore through $40 by mid summer. Since then it’s been consolidating between 39 and $42, carving out a classic bull flag pattern for seasoned traders. That’s not a sign of weakness, it’s a continuation signal, the market catching its breath before the next leg higher.
The measured move target from this pattern points to 45 to $47, while Fibonacci extensions confirm resistance at around $44. But the real trigger isn’t these mid level targets. It’s $50 above that. There is no resistance, no ceiling, no memory in the charts to slow it down. Once $50 breaks, Silver enters open sky and price discovery can turn into a feeding frenzy. The thinness of the market means it doesn’t take massive inflows to launch vertical moves. And with technical momentum aligned, Silver isn’t just preparing for another rally, it’s preparing to blow past every barrier that’s capped it for decades.
Looking at is $44 and if I zoom in here so we can see that red line’s at 44 and then the next one beyond that at 47, we’ll call it 48. Round up to 48 close enough to the $50 all time high mark. Right. And after that we can take a look at the extensions going beyond there. 55, 66, 85. The beauty of this one is once we get past the $50 kind of psychological mark for people, then we’re into all time high resistance or all time highs. And there is no resistance up above it that I see other than these little levels here.
Right. And I think that’s when it’s going to get really exciting. As far as near term, what do I see on some of these patterns if I zoom in here on the daily? This is what we call a bull flag and what this formation looks like, you let me draw it for you here. So we’re all on the same page, is you have the poll going up and then you have what we call bullish consolidation moving sideways. So it’s like the flag pole and then you have kind of the flag blowing in the wind, right? And this is a bullish pattern.
So basically what it is is like your average, you know, investors kind of find out what’s happening in the market and they all buy it up and then they start to take profits. They take profits, other people buy. Take profits, other people buy. And that’s where we are right now. And just kind of this bullish consolidation going sideways. So when I see a pattern like this as a technician, probabilities start going in my head, right? And I start to say, okay, we’re above 60% for sure. To move up to what would be the next level on the Fibonacci extension, which would be $44.
Another way you could measure this is you could do just like we did before with the cup and handle is you could take from the bottom of the pole up to the top and then you extend this up and this would be another target up here. This would be about $47. If we wanted to be a little more conservative and maybe what we do is we say that, you know what, this is kind of like a previous bull flag here. So we’re actually going to start the poll right there. Then we could be a little more conservative and say, okay, we’ll start the poll right here, run it up to the top, and then we’ll extend that up to what would be the breakout.
And that puts you at about 45 bucks. Now we’re starting to kind of line up with the, with the Fibonacci extension. $44. 45. Tomato, tomato. I think that’s close enough for me. It’s kind of tough for me to buy these breakouts right here. I’m a little more of a bottom picker. And so I kind of, I like, like these liberation day sell offs, you know what I mean? Like catch some, you know, air quotes, bad news in the, in the markets, and catch these moments right here that that’s a little more me. But if you’re. If you got a little bit more of a gambler in you, I think it’s more likely that this moves to the upside, to the downside, that on top of it, you know, we’ve got gold that I think is getting pretty close to our.
Our next target upside of 3750. If gold moves up, this is likely going to move up as well. There could be a little arbitrage here, especially with some of the miners, you know, if you’re a trader, you know, but as far as accumulation stages on this, I really like accumulation around 38, $39. But you know, if you’re a trader, I think there might be a little more. Silver isn’t just riding on financial flows. It’s being devoured by industry at a pace the market can’t keep up with. Solar panels alone now account for nearly a fifth of global silver demand.
And with governments worldwide pushing aggressive net zero targets, that share is only set to climb. Every photovoltaic cell needs silver and there’s no substitute that can match its conductivity and efficiency. Then layer on the electric vehicle boom where silver is embedded in every circuit, battery connection and onboard system. By 2030, EV production is expected to triple, locking in years of relentless demand. Add in 5G networks, medical technology and even defense applications and you start to see the scale of the industrial squeeze. Unlike gold, which is hoarded, silver gets consumed, used up in products where recovery is difficult or uneconomical.
That means the above ground stockpiles are being drained faster than they can be replenished. This isn’t just a bullish factor. It’s a structural driver that ensures every ounce of investment demand collides with a shrinking supply base, magnifying the coming breakout. Yes, I do. Interim. Let me emphasize my point here. Okay, so each one of these I’m going to take out. So this is a quarterly chart. Every single bar is a quarter, right? A monthly, weekly, daily. All right, so just starting with gold here, and a way to judge, a quick way to judge very quick is if we’re overbought or not is to look at what we talked before, the RSI.
So if I look at the RSI, this is going back to July of 2011, right? And that’s the high. I look at the RSI and it’s 94.77. Whenever it gets above this little kind of dotted line right here, that’s that line is set at 70. And this is kind of what all traders look at. So it kind of becomes a self fulfilling prophecy. You know, all traders have the 200 day, the 50 day and the 20. Not all, all of them, but the vast majority of them have those same moving averages on there. The vast majority of them have the RSI and the macd.
So we’re all looking at the same stuff, you know, and when we’re all looking at the same stuff, guys that are really on it will program computers to all look at the same stuff and to automatically buy on these moving averages or automatically sell at certain points. So if we look at the RSI here on gold on the quarterly, it’s, it’s 94 here. And where we are today is at 86 on the quarterly. Now I’m going to go to the monthly. So now every single bar here is, is one month in time. And if I go back to some of these overbought scenarios, here’s 1979, the RSI was at 87.
This is on the monthly. And if I go here to the 2011, same point right, July 74. And where we are today, 88. Okay, so anything above 70, alarm bells should be going off in your head right back here again. Now we’re on the weekly in 1980. Okay, so we got 95. We go over here, we’ve got 73. And where we are today is at 70. Okay. So yes, we definitely are a little stretched in the, in the time frames. Not to say it couldn’t go further, but my baseline expectation is that we’re still in a bullish uptrend.
We still have a long way to go. I mean, I think gold and silver are probably going to 10,200 over the next, I don’t know, two, three, four, five years. But along the way you do have pullbacks, and I think we’re pretty close to having one in both of the metals. You know, we have these pullbacks here and we have these pullbacks here. Those are simply buying opportunities. We did have a bit of a bearish candle yesterday. This is what you call a topping tail, but didn’t seem to matter. Gold’s on the way up again today, but yeah, it wouldn’t surprise me at all if we get some little pullbacks here.
I can do the same real quick thing. We’ll just go on the weekly here for silver and RSI in 2011 got up to 83. And then here’s another moment in 2020, 71. And today we’re at 69. I mean, yeah, I think we could be ripe for a pullback, but you know, when these things go, they really, really rip. And here’s where the pressure becomes undeniable. The supply side is breaking. According to The Silver Institute, 2025 is already on track for a record structural deficit of more than 200 million ounces. That’s not a minor shortfall. It’s the largest in history.
And it’s happening in a market that was already tight. Mining output isn’t rising to meet the surge in demand. If anything, it’s stagnating under the weight of declining ore grades, environmental restrictions, and years of underinvestment recycling can only fill a fraction of the gap, Leaving a gaping hole between what industry consumes and what the world can produce. Metal’s focus has gone so far as to call this a new paradigm where dips in price are likely to be shallow and short lived simply because there isn’t enough metal to satisfy buyers. What this creates is a powder keg.
Investors competing with industrial giants for the same finite supply. And in that kind of environment, price suppression simply can’t hold. The fundamentals are screaming higher. Okay, we’ll start out like we did before and just go long term here on platinum. So this is going back to the 80s. And we can see. This is a price chart. Okay. So monthly we can see that platinum was basically since around 20. Was that 2015? So for 10 years, it’s basically just been trading in this range of around, you know, 850 bucks, sometimes even lower up to 1300. We got there in 2011, I’m sorry, in 2021.
But you know, for the last decade or so, it’s just kind of been trading in this sideways channel right here. Now if we take the long term trend line here from the tops in 2008 and bring it down here, it touches there again in 2021 and kind of does the pinball thing and it finally breaks out. So we are confirmed in a platinum bull market. We’ve had a breakout here, which is awesome as platinum investors. And if we take this kind of to give us an upside target here of the rail, we got a touch rate here in 2016, another one in 2021, and then another one recently, just a couple of weeks ago.
Right. Got all the way up to almost 1500 bucks. What’s pretty cool about this is I think this one has a long way to go. And I’m not necessarily even looking at price on this. To get in and to get out. What I’m doing is what you alluded to is I’m looking at the ratios. And so if we go to platinum divided by gold, this is an amazing chart. Let me get rid of the drawings here just for a sec to emphasize my point. And so this is if you take one ounce of platinum and you divide it by one ounce of gold, and this goes back into the 80s again.
And you can see there’s moments in history where if we line up the ratio over here, you could trade one ounce of platinum would get you two ounces of gold. And then today it costs you Three ounces of platinum to get you one ounce of gold, right? It’s reversed. So if you take, let’s say you, you wanted to gamble, right? You could literally trade one ounce of gold right now and trade it for about three ounces of platinum. And I think in the not so distant future, this chart is going to reverse and you’ll be able to take one of those ounces of platinum and get maybe one or one and a half or two ounces of gold.
And so this is my basic thesis with this is each one of these white lines is telling you a ratio and it goes up by half each time. So this is half an ounce of gold will get you one ounce of platinum. This is parity. This is one to one, one and a half, two and two and a half. And so here’s my plan is if platinum gets to parity with gold, then I will trade 50% of my platinum for gold. And if platinum gets to one and a half times that of gold, then I’ll trade 50, 30% of my remaining position.
And if platinum gets to 2x with gold, then I’ll trade the remaining 20% of my platinum for gold. So this is my plan for it. This is a gamble, right? You know, platinum isn’t technically money. I think the Russians used it, you know, back in the 1800s or something. I said that once. I got corrected by one of my subscribers. But, you know, this is a gamble. This is speculation, certainly not for everyone, but this is how I’m playing it. All the forces we’ve covered are now colliding into what can only be described as a perfect storm.
On one side, the stock market is teetering on the edge, stretched to record valuations and flashing technical breakdowns that scream correction. On another, gold has already confirmed its breakout, sending a signal across the financial world that the era of paper wealth is waning and hard assets are taking the lead. Silver, meanwhile, sits at the intersection of both financial panic and industrial necessity. An asset with one foot in the safe haven camp and the other locked into the green energy future. Add to this the supply deficit, the overbought yet still structurally supported demand, and the gold to silver ratio screaming undervaluation, and you get a setup that’s unprecedented.
This isn’t just a single bullish factor. It’s the convergence of every major driver stacking in the same direction. Markets rarely hand out this kind of alignment, and when they do, the results are nothing short of historic. Yes. Yeah, I think so. I really do. And here’s another one for silver. I mean, I literally made a trade right down here. And today it looks like I’m psychic. You know, at the time it was a little hairy. It was like, I mean, this chart could have just kept going down. But yeah, I think that platinum is really, really cheap in comparison to silver.
I think doing a swap now you can basically get, you know, a kilo of silver will get you one ounce of platinum. Which is, which is kind of nuts when you look at the historic example, you know, back here in 2003, took 150 ounces of silver to get you one ounce of platinum. Now it’s 33 ounces of silver will get you one ounce of platinum. So I think this ratio will reverse, you know, and I think it’s just a matter of time. I have no idea when, but I think it’ll happen. Oh yeah. Thank you so much for having me on.
You can check out my YouTube channel in it to win it and if you’re new to charting you, I came out with a technical analysis series for beginners. I basically took it’s about three hours worth of videos. The first 30 minutes are me showing you mouse click by mouse click how exactly to set up the charts so they look like you saw on the screen now or tailored to whatever you want. I also publish a free weekly newsletter with market recaps and a premium newsletter where I share the exact stocks that I’m buying and selling with real time trade alerts.
So you can find everything my channel, newsletters, other resources and real time trades on my website, Steve Barton money.com.
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