Silver to shine
Gold has been bid recently on President Trump's latest announcement that the US-China deal may need to wait now until after the US Presidential elections in 2020. As long as the trade war drags on, and if it sours further, then expect more gold bids.
January is a strong month for gold historically as gold purchases are made ahead of the Chinese lunar new year. See Adam's post here with the record of his historical posts on gold's strength in January. I came across an interesting post which made a case for silver having more upside than gold. This was what it said:
1. The metals are highly correlated, but silver offers a beta of 1.3 over its more expensive cousin
2. gold-silver ratio has dropped to 86 from 93 in July which means silver outperformed on the coat tail's of gold gains. See chart below
3. If safe haven demand continues, there is no reason why this couldn't continue either.
Worth bearing in mind.
