Good Morning!

Silver has broken out from its 45-year-long base.

It's the 2nd Greatest Breakout of all time.

Gold Stocks and Silver Stocks are in very bullish consolidations.

Gold is consolidating. 

Today I take a step back and review 5 charts for you to provide a historical perspective. 

These charts date back 170 years!

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1) Gold 

As I wrote recently, Gold is mirroring its performance from the early 1970s.

Specifically, it resembles 1972-1973.

There was a 24 month period from 1971 to 1973 when Gold surged 225% and endured only a single 13% correction along the way.

The arrow in the chart shows where we could be based on that template.

My all-time high breakout analog chart shows that the average of the 1972 and 2005 breakouts puts the current move at $7000/oz in March of 2026.

Gold may needs a 20% correction between now and then to reach that target. 

2) Silver 

It's the 2nd Greatest Breakout of All-Time.

(The Greatest was Gold in 1972).

As our historical work (based on the 1967, 1973 and 1978 breakouts to new all-time highs) shows, Silver could double within 7 to 11 months.

There's that and there's also a measured upside target of $96.

Silver cleared its Civil War high and 1967 high in 1973. The current breakout is another similarity to the early 1970s. 

It broke above $3 and ultimately peaked at $50.

3) Gold/Silver Ratio

This chart plots the Gold/Silver ratio in black and Silver in blue at the bottom of the image.

This chart shows where the Gold/Silver ratio will end up at the peak of this secular bull market.

Below 20. 

It's 69 now and Silver has broken out of a 45-year-long base. 

Look out.

4) Gold vs. S&P 500

The Gold/S&P 500 ratio closed at 0.62.

At present, its trying to break-out from a 12-year-long base. 

A breakout gives it a measured upside target of 1.

The history is quite instructive. 

The secular peaks of the last 140 years tend to be around 5.

This is monthly data. The peaks in the Great Depression may have been closer to 5 and we know the 1980 peak was above 7. 

If the S&P 500 is at the same level in 10 or 12 years, that's nearly $35,000/oz for Gold. 

5) Silver vs. S&P 500

Here we plot Silver against the S&P 500 (in black) but the scale on the right is inverted. 

The numbers show S&P/Silver while the black line shows Silver/S&P.

The ratio is at 113 now.

Could it go back to 1 (Civil War) or 2 (1980)?

I suspect it ultimately goes to single digits.

Summary

Gold and Silver continue to follow the early 1970s playbook.

There is a lot more upside potential in the current cyclical bull market and the ratio charts show the secular bull market is only in the 2nd inning.

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In TDG #964 we shared some thoughts on the best buys right now and also potential future Top10 companies.

Our Top10 companies have been very successful and market caps that were once $100 and $200 Million are now $1 Billion. Market caps that were $400 and $500 Million are now $2 and $3 Billion.

We wrote about a handful of these future Top10 companies and also noted in very recent flash update, that we can add another company to that list. 

Value is out there. We do the work to find it. 

We will continue to uncover quality juniors trading at excellent values and sporting 5x potential over the next few years. 

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Thank you for reading.

I wish you all the best in 2025 and beyond.