Our Top Pick for speculative investors in the year ahead is silver, suggests Mary Anne and Pamela Aden, editors at The Aden Forecast.
The positives going for the metals markets are far greater than those for the other markets, including stocks, bonds, currencies, cryptos and more. These are several reasons for this and following are the ones we feel are most important.
At the top of the list is inflation and the Fed. The Fed is determined to bring inflation down. And despite the recent softening in the inflation numbers, it’s set to stay high in the months ahead.
This means the Fed will keep interest rates high, and this in turn will keep downward pressure on stocks and bonds. In fact, based on various reliable indicators, the stock market is bearish and it’s set to fall further in 2023. This will make precious metals a more attractive option.
Silver has been weaker than gold this year. But this is changing and it actually looks like silver is going to outperform gold. The gold-to-silver ratio reached a major high area in 2020 causing the indicator to flash an expensive gold price versus silver.
The ratio has since declined, and it has lots of room to decline further, which favors silver. And indeed, silver is shooting up, along with gold and copper. This is great for silver to have gold and copper rising at the same time.
Technically, silver is breaking above its 65 week moving average. This means if silver can now stay above this average at $22, it’ll remain very strong. The leading indicator is on the rise with room to rise further before it reaches a high area.
The bottom line is, silver is a buy and hold investment. An easy way to buy silver is via the iShares Silver Trust (SLV), an exchange-traded fund for silver. Buying silver is your best speculative bet for 2023 — and that’s our top recommendation. We think you’ll be glad you did.
