For gold investors patiently awaiting a gold rally, one expert says the time has come.
"This is exactly the time, that something unrelated sets off a gold rally. The charts say it's time and the gold/silver ratio says its time, but it's not going to come from where you think, it's going to come from left-field," said E.B. Tucker, editor of The Casey Report. The gold/silver ratio was designed at 15-1 but has continued to balloon over the years, getting as high as almost 90-1. In 2011, the ratio was 40-1 and has slowly widened back to 80-1.
For Tucker, this ratio is a key indicator, noting it has only reached these levels four times in the last 20 years.
"It is the number one indicator that we watch when we are looking at putting money to work in the space - the last time it happened, the HUI went on a tremendous run 150-200% - this indicator has been full proof the last 20 years," he explained.
Tucker added that he especially likes stocks that have been down on their luck, noting Coeur Mining (CDE) and First Majestic (AG) as his picks.
"I'm going to tell you something shocking, When you see a big move in the sector, the stocks that have been the dogs actually move more than the stocks that have been really good," he said.
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This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.