Hello, Reader.
Silver is as “good as gold.”
Actually, it’s a better buy than gold right now.
That’s not my opinion. It’s the “opinion” of an ancient trading indicator called the silver-to-gold-ratio, or SGR. Whenever this indicator falls to readings that are as low as they are today, the silver price rallies… usually a lot.
For most of the last 30 years, the SGR has ranged between lows around 1.2 and highs around 3.1 – meaning that the price of silver has ranged from 1.2% of the gold price to 3.1%.
The rare moments when this ratio traded below 1.27% signaled great moments to buy silver.
A reading that low has occurred only eight times during the last 30 years. In absolute numbers, here’s what the silver price did in each case. After the ratio hit…
- 1.25% in 1996, silver advanced 60% over the next 15 months.
- 1.24% in 2003, silver tripled over the next three years.
- 1.26% in 2008, silver skyrocketed 370% over the next three years.
- 1.20% in 2016, silver bounced 38% over the next five months.
- 1.10% in 2019, silver nearly doubled in little more than a year.
- 0.9% 2020, an all-time low, silver doubled in less than six months.
- 1.05% in 2022, silver soared 79% in less than two years.
Incredibly, during each of these rallies, silver not only outperformed gold, but it also outperformed the S&P 500, which demonstrates silver’s value as portfolio hedge.
Earlier this year, the SGR ratio dipped below 1.27% once again when it hit a low of 1.0% on April 21. Since then, the white metal has advanced 16.2% – a solid gain, but far behind the S&P 500’s 25.7% return over the same time frame.
Nevertheless, if past is prologue, the silver price will continue chugging higher and surpass the S&P eventually.
But today’s low SGR reading is not the only reason silver could soar over the coming months. Persistent silver supply deficits are also adding to the bullish cocktail.
Additionally, silver could attract “safe haven” buying from folks who worry about simmering geopolitical tensions and/or rising U.S. indebtedness.
These exact concerns are why I recommend an ETF that holds substantial assets in physical silver to my Fry’s Investment Report members.
To help support that recommendation, I quoted the astute financial writer James Grant when he observed…
Gold is a bet on monetary disorder – indeed, on other kinds of disorder, too, including fiscal, geopolitical and presidential.
Although these three disorders are continually evolving, they’re still hanging around, which is probably why the gold price is still hanging around its record high. This suggests the yellow metal “sees” trouble that is not yet visible to the human eye.
Bottom line: A confluence of influences are combining to drive the silver price higher.
To learn how to access my silver recommendation, simply click here.
Now, let’s take a look back at what we covered here at Smart Money last week…
Smart Money Roundup
How to Invest Before “AI Day Zero” – The Biggest Wealth Event Since the Internet
August 13, 2025
Every few decades, a single word can define an entire era of wealth creation. “Plastics” in the 1960s… “Yahoo” in the dot-com boom… “iPhone” in the mobile era.
Today, that magic word is “Physical AI,” when AI steps out of the cloud and into the real world. To help investors get ahead of this next wave, we recently released a new broadcast unveiling our Day Zero Portfolio – seven cutting-edge stocks leading the real-world AI revolution.
AI Is Minting New Billionaires – Here’s How to Join Them
August 15, 2025
When it comes to artificial intelligence, more is more. More AI also equals more billion-dollar tech companies… and, thanks to their high valuations, more billionaires.
As AI continues to accelerate, most of the wealth will flow to the top 1 percent of investors and companies who leverage technology, while 99% of investors and businesses will get caught off guard and fall behind.
I want to teach you how to stay ahead of this technology-driven wealth divide, and show you how to position yourself to profit as AI continues making not just billionaires, but breakthroughs – especially in world of “Physical AI.”
Missed the Digital AI Boom? This Is Your Second Shot
August 16, 2025
The AI boom isn’t slowing; it’s shifting. We’re moving from chatbots and code to machines that think, move, and build in the real world. This Physical AI Revolution is about to create the next wave of market winners, and the biggest returns will go to those who position themselves before Wall Street piles in.
My InvestorPlace colleague Louis Navellier shares exactly where the smart money is heading in the next phase of the AI boom – and how you can stake your claim now before these stocks go vertical.
Say Hello to the $400 Billion AI Bazooka Aimed at the Market
August 17, 2025
The loudest voices in the market are currently the doubters, warning that the tech rally has gone too far. But they’re missing the single most important fact driving today’s markets: Big Tech is unleashing hundreds of billions of dollars on AI infrastructure. InvestorPlace Senior Analyst Luke Lango explains the $400 billion AI Bazooka aimed at the market… and how the AI Bazooka always finds its target.
Looking Ahead
AI has been top of mind here at Smart Money recently.
As I’ve been saying for a while now, it is the lens through which we have to make all of our investment decisions now.
This is because AI will enable thousands of innovative companies to flourish and enrich their shareholders. But at the same time, it will cut a swathe of destruction through the ranks of companies who fail to adapt.
That’s why this exciting, and terrifying, new era demands a radical rethinking of investment strategy.
I’ve identified four distinct AI investment categories, each of which offers different levels of risk and reward. From this day forward, every stock you consider should fall into one of these four categories.
I will dive deeper into these categories in your next Smart Money. So, be sure to keep an eye out on your inbox!
Regards,
Eric Fry
