The gold-silver ratio will likely drop to 60 in the medium term as gold continues to lag while silver outperforms, said Phil Streible, chief market strategist of Blue Line Futures.
“I believe that all of a sudden silver is going to disconnect from gold and start to travel with platinum and copper and be what it truly is, which is this green energy metal,” Streible said.
The best-case scenario for silver investors is for this disconnect to happen and the gold-silver ratio to breakdown to lower levels near historical averages, Streible said.
“All too long silver has been the victim of gold all these years, travelling with it and not seeing its characteristics and its true nature,” he said.
Gold is likely to lag behind until much later in 2021, Streible added.
“People really need to be able to get comfortable being able to sell the asset and buy the asset on corrections,” he said.
On crude oil, energy is going to benefit from a re-opening of the economy next year as the vaccine for COVID-19 rolls out.
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