ClearValue Investing

Do Not Sell Your Silver

Added 2025-12-27 16:26:18 +0000 UTC

Silver is now at $79.59 a troy oz.

I am not selling my silver at $79.59.

Am I going to sell a portion at $79.59? No.

Is there a valid argument to take some money off the table and de-risk? Yes, there is, however, I am choosing not to (which there is a valid argument not to as well).

The gold-to-silver ratio (GSR) is at 57. Take a look at the GSR chart.

The GSR is normalizing to the historic mean. At 57, it's currently at the top end of the range (near 60). The thought of selling will not even cross my mind until 50. And then at that point, we'll have to assess the situation.

Being in the 40 range would not be anything statistically special from a historical perspective.

The current environment is set-up well. We're in the seasonal buying period, China has implemented silver export restrictions & controls starting January 1st, the LBMA is suffering an inventory crisis, the shorts are being squeezed and shaken out, and the Fed is cutting rates and printing money.

Word on the streets is that manufacturers are already going straight to miners, especially in South America, because they're afraid the exchanges will not be able to deliver on paper contracts. You can call it "dislocation" or a "shortage". Whatever you want to label it, the buying pressure was done on heavy volume and shows no signs of dissipation.

A 10% move in one day is NOT normal for metals. This is not looking good for anyone betting against silver. I'm expecting the Chinese to gap this up on Sunday evening.

Also, these events are good for gold as well. Any panic or crisis in silver will create contagion and will inevitably spread to gold. Gold and silver are not in competition with one another. It's like "big-brother" & "little-brother" with a rotation from fiat and paper promises into real, physical assets. What's good for one is good for the other.

I'm not selling my silver now. I'm not going to sell my lifeboat in this great wealth transfer. But be prepared for heightened volatility. That is expected!