Daily Gold Market Report

Beyond the Surface:
A Deep Dive into Silver’s Market Undervaluation

(USAGOLD – 5/14/2024) Gold prices are slightly up as producer price index (PPI) for April came in hot, at up 0.5%, month-on-month, versus expectations for up 0.3%. Gold is trading at $2348.74, down $12.42. Silver is trading at $28.47, up 27 cents. The recent piece “Silver Is Ridiculously Undervalued” by Taki Tsaklanos discusses the undervaluation of silver, emphasizing its significant underperformance relative to gold over a span of 135 years, losing approximately 70 to 75% of its value when priced in gold. Despite this, silver has shown resilience, being the third-best performer on a one-year timescale with an 18.1% gain, outperforming even as crude oil faced a 40.2% decline. The article also touches on the potential impact of the silver squeeze movement and the strategic importance of investing in silver, suggesting it as a means to challenge financial elites. It highlights silver’s historical role as a store of value, akin to gold, despite facing price suppression through concentrated short positions. The discussion extends to the complexities of accurately tracking the physical silver market, given the challenges in quantifying significant portions of it. Additionally, Tasaklanos delves into the dynamics of silver’s valuation, including its relationship with the Australian Dollar, commodities, Dow Jones, Treasuries, and Bitcoin, presenting a bullish outlook based on various chart patterns. He predicts a potential surge in silver prices, supported by a detailed analysis of silver’s price expressed in these assets, suggesting a readiness for an upward movement.