While CNBC’s ‘Mad Money’ host Jim Cramer told investors to “sell gold,” labeling it a “total spec/meme Bitcoin replacement,” Crescat Capital’s Otavio Costa contends that despite a significant reversal pushing gold near $4,000 per ounce, the precious metal’s bull run is far from over, primarily citing a historically high gold-to-silver ratio.

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‘History Of Gold Cycles’ Shows Third Major Bull Run Underway

In a recent X post, Costa presented a chart detailing “The History of Gold Cycles,” illustrating the current rally as the “3rd Gold Cycle.”

He emphasized that gold bull cycles typically do not peak until the gold-to-silver ratio is significantly lower, specifically around 45. Currently, that ratio stands at 85, suggesting considerable upside potential if historical patterns hold true.

Costa highlighted that in previous cycles, a gold-to-silver ratio below 20 preceded the peak in 1980, and it dropped to 30 before the 2011 peak. This historical context forms the bedrock of his argument that the current surge past $4,000 is not indicative of an imminent top.

Major reversal in gold today, holding strong above the $4,000/oz mark.Gold bull cycles don't typically peak with the gold-to-silver ratio as ...