Silver: Outperformance Cycle vs. Gold Has Ended

The price of silver, aligned with gold’s underlying bullish trend in financial markets and also supported by its own fundamentals, rose vertically to $121 at the end of January before undergoing a sharp 47% correction within just a few days. Can we assert that the annual high in silver has been set at $121? Furthermore, has the catch-up phase of silver relative to gold come to an end?

At current prices, gold has a market capitalization of 35 trillion US dollars (35T$), while silver stands at around 4.5T$. By comparison, US GDP is 29T$ and global money supply (global M2) is 110T$.

Silver does not have the same status as gold and will NEVER match gold’s market capitalization. However, cycles of outperformance and underperformance exist between gold and silver, and it is this cycle that interests me today.