Inflation enthusiasts should consider adding some silver bullion to their investing “repertoire”. On this gold versus silver ratio chart the 75 area and higher has been a great place to sell gold and buy silver and the 50 area has been an equally great time to sell silver and buy gold. Significant wealth can be accumulated with this strategy. What’s particularly exciting now is that some major bank analysts are recommending this trade.

We’ve seen myriads of signs pointing to lower precious metals prices in the past months, weeks, and days. We even discussed how ridiculously similar the current situation is to what happened in 2013, right before the $200+ decline in gold. But the final bearish confirmation usually comes from the silver market and this time is no different.

A key difference between silver and gold prices is the fact that silver already bottomed in 1993, whereas gold bottomed only in 1999. This means that from 1993 to 1999 silver was actually in an uptrend, while gold was still caught in a downtrend. This little known fact might not have been so important to date; however, it might become more important as this bull market progresses.

Putting this all together, we must once again warn precious metal investors and traders to avoid "catching the falling knife". Though it may appear that price is near a physical floor... and though it may appear that the CoT positioning is near historic levels... and though it may appear that the charts look oversold... none of this will matter if the emerging markets continue to melt down and China continues its regime of devaluations against the US$. In this scenario, COMEX precious metal prices will continue lower, despite all traditional metrics.