Silver Has More Upside Potential Than Gold – Wells Fargo – by Anna Golubova (Kitco News – April 29, 2018)

(Kitco News) – Even though both gold and silver are stuck in a bear market for at least another five years, according to Wells Fargo Investment Institute, traders should pay close attention to silver as it has more upside potential than gold.

“We expect another five years or so of the bear, which means capped price rallies, and lots of sideways price action,” John LaForge, head of real asset strategy at Wells Fargo Investment Institute, said in a note this past week.

Even though LaForge is not bullish on either metal, he sees more opportunity in silver. In his five-year forecast, he states: “Gold’s range for the rest of the bear super-cycle we suspect will be close to $1,050 to $1,400,” while silver’s range is between “$13 [and] $22,” he said.

Silver’s fundamentals are looking more promising, LaForge pointed out, highlighting the gold-silver ratio and stating that silver has more growth in front of it as the metal is priced slightly lower form where it should be.

The gold-silver ratio is currently at 80.3, which means that gold is trading at about 80 times the price of silver, which is much higher than the historical average for the pair.

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