Gold is enjoying a great start to 2016, but investors shouldnt forget about that other major precious metal: silver.

Nicknamed the devils metal, silver is often viewed as a beta play on gold, in that once the latter metal starts moving higher, the former can produce even greater returns on a proportional level. Whereas gold has been compared to a large aircraft like a B-17 bomber, silver is sleek and nimble like an F-16 fighter jet.

Price rose 14% last time around: After fluctuating between 69 to 79 over the course of 2015, the gold-silver ratio now stands at 78:1. That is, it takes 78 ounces of silver to buy one ounce of gold. In the past two decades, the ratio has only been above that level on about five occasions, and never for more than a three months, Bloomberg reported.

And the ratio hasnt been this high since August, when it stood near 80:1. What happened then? Silver rallied 14% in the following two months. Gold added about 5% in the period, Bloomberg noted.

Coin and bar options abound: If youre looking for a bullion product that tracks the price of silver while also boasting an attractive design, look no further than the silver American Eagle bullion coin produced by the U.S. Mint. A new all-time sales record was set last December when the Mint sold 47 million of the 1-oz. coins over the course of 2015. In fact, silver Eagles have experienced their five best sales years in the recent past, when records were set in 2014, 2013, 2011, and 2010.

The new 2016 silver American Eagle will go on sale in the coming days. Other major mints also produce flagship silver coins, such as the silver Maple Leaf from Canada. Blanchard and Company also regularly offers privately minted silver rounds, circulated Morgan dollars, circulated Peace dollars, 10-oz. silver bars, and 100-oz. silver bars.

And for the silver investor who has everything, consider a sealed green Monster Box of 500 silver American Eagles.

The new years first week is well under way, and 2016 so far hasnt been kind to the global stock markets. As some analysts have shown, opening day for stocks often sets the tone for the rest of the year.

In a note titled The 7-Year Cycle in Equities Is Rolling Over…Buy Gold!, one major Swiss investment bank is throwing caution to the wind and predicting the end of the seven-year bull market in equities, with a significant correction forecast for the S&P 500, or SPX.

20% to 30% decline seen: Tactically, after a weak start into January, we still see the chance of a bounce and selective overshooting in later [first quarter]towards 2,200 to best case 2,300, wrote a UBS team led by Michael Riesner and MarcMller. However, looking at the further increasing selectivity/volatility globally, andtaking into account that from a cyclical aspect the eight-year of a presidential turn has quite a negative trackrecord, we expect the SPX to move into a [second quarter] top and fall into a full-size bear market, with risk of a 20%to 30%correction into minimum later 2016 and worst case early 2017.

What does a potential bear market for stocks mean for gold? Precisely what you might expect for two asset classes that historically often move in opposite directions: UBS is predicting that the building blocks of a new bull market in gold will fall into place in 2016.

Dollar goes bearish by 2017: Gold has been trading in a cyclical bear market since 2011, the team noted. In 2016, we expect gold and gold mines moving intoan eight-year cycle bottom as the basis for the next multi-year bull market. Initially, we see gold profiting as a safehaven and as of 2017, gold could profit from the U.S. dollar moving in a major top and starting a bear market.

A key catalyst for a turn in the dollar would be if the Federal Reserve reverses course and loosens, rather than keeps tightening, monetary policy in reaction to deteriorating economic conditions. This big U-turn in policy might result in a fourth round of quantitative easing, or QE4.

However, UBS apparently isnt predicting a straight-up move higher from here. It sees the potential for another major buying opportunity that investors should not be concerned about, but rather seize with both hands.

A potential bottom in 2016 bottom could be a rather powerful bottom, since together with a four-year cycle low we have also an eight-year cycle low projection for this year, its analysts wrote. In this context we expect a potential 2016 low in gold to be the basis of a new multi-year bull market.

No bubble until $3,300: For UBS, the bull market in gold never ended with the 2011 peak and subsequent price drops. Rather, the pattern in evidence today is merely like what occurred during the mid-1970s. Pattern wise we continue to see the 2011/2016 cyclical bear market in the same context as the 1975/1976 bear cycle in gold, UBS argued. Keep in mind, in the mid-70s gold lost 43% of its value from its January 1975 top before another gold bull market started into the January 1980 bubble peak. It is amazing to see that with a loss of 45% from its August 2011 top into the early December 2015 low, the decline in gold has more or less exactly the same proportion as in the mid-70s.

Furthermore, there are still a lot of market commentators who say that the August 2011 top in gold was the top of a bubble. According to the average gains we have seen in historical financial bubbles, the gold bull run from 2001 into 2011 (760%) was far away from any bubble territory. In the first gold bubble, gold gained 2400%. In the 1903 to 1929 Dow bubble, the Dow Jones Industrial gained 1200%. The 1979-1989 Nikkei bubble came in at around 2000% and the 1980-2000 Nasdaq bubble topped out a +3900%.

So if gold moves into a bubble, we would need to see a gold price of minimum $3,300, and in this case we would still talk about a low bubble phenomena such as the 1903-1929 Dow Jones bubble!!

In other words, if UBS is correct, you aint seen nothing yet in gold, and the $1,900 peak reached in 2011 could be merely the opening act or intermission before the yellow metals bull-market resumption and all-time record-setting crescendo.

Is it safe to come out yet after this weeks carnage in the Chinese stock market? Not according to at least one major investment bank. And if Chinas economic woes persist, look for a potential resurgence in gold demand from the citizens of the worlds most populous country.

The Shanghai Composite stock index could lose 27% by the time 2016 is over, thanks to slowing growth and major debt, predicts Bank of America Merrill Lynchs head of Chinese equity strategy, David Cui.

High risk of credit crunch: Historically, any country that grew debt this fast inevitably ran into financial-system problems, including currency devaluation, banking recap, and high inflation, and we do not expect China to be an exception, said Cui. We believe that the government had maintained system stability over the past few years by allowing various implicit guarantees to get firmly entrenched, which has made the financial system fragile.

Cui expects further financial instability to manifest itself in the form of a combination of RMB devaluation, debt write-off and banking sector re-cap and possibly high inflation. Given the sizeable and unstable shadow banking sector in China and the potential of capital flight, we also think the risk of a credit crunch developing in China is high.

Battered investors swear off stocks: If this is just the beginning of turbulence in the Chinese stock market in 2016, then gold could gain in allure as Chinas gun-shy neophyte investors return to what they know as a traditional safe haven: bullion bars, coins, and jewelry.

According to one Associated Press story, Chinese investors are already getting frazzled as their equity investments sour. I do not want to invest anymore, one citizen complained. This is just too miserable. It hurts, emotionally, a lot.

Battered by market gyrations, Chinese small investors are swearing off stocks, the AP noted. Despite a rebound in prices from their August lows, no significant new money from small investors has flowed into stocks.

They have either no more money to invest or they just dont want to invest anymore, said Guo Yanhong of Founder Securities.

Global economy is slowing: In contrast to stock investing, gold has been a culturally important form of saving and investing in China for thousands of years. No doubt the Chinese will be holding onto their yellow metal a bit more tightly this year if Bank of Americas forecast pans out.

Western investors should be paying attention, too, because according to The Lindsey Groups chief market analyst, Peter Boockvar, the Chinese stock correction is sending a dire message about the U.S. economy.

The Chinese economy has been slowing for years, but its a wakeup call to the markets that the U.S. economy is slowing down, the global economy is slowing down, and central bankers are losing their effectiveness in propping things up, Boockvar told CNBC.

Bottom could be in for gold: If the stock bear takes hold, where should investors turn? Investors have to go to whats already been beaten up, and commodities are now 4 years into a bear market. I believe that the drop in oil last year was the last phase of the bear market, Boockvar said.

If what we saw yesterday in the markets is a precursor to more, the Fed, I dont see them raising rates again. Therefore, the dollar strength is not there, commodities may get a bottom from that, gold and silver will be a big beneficiary of that. Theyve had a rough four years, and I think the bottom is in.

Meanwhile, China is making clear that the foreign banks it invited to participate in its bullion markets had better buy into its yuan-denominated benchmark fix this April or else they will be effectively banned from using their import licenses to bring gold into the mainland. Those banks are the Australia and New Zealand Banking Group, HSBC, and Standard Chartered.

The carnage thats taken place in the Chinese stock markets has been blamed in large part on its government policies to prop up and rig markets.

Its easy for Westerners to point fingers at the Chinese, but if what one former Federal Reserve policymaker recently said is true, the U.S. central banks post-crisis monetary engineering was just one big con game that artificially inflated the stock and bond markets.

What the Fed did, and I was part of that group, is we front-loaded a tremendous market rally starting in 2009, in March of 2009, ex-Dallas Fed chief Richard Fisher told CNBC on Tuesday. It was sort of what I call a reverse Wimpy factor: Give me two hamburgers today for one tomorrow. And Im not surprised that almost every single index you could look at, if you take away dividends in the S&P last year, unweighted goes down significantly. And all the other indices were down. In terms of the 10-year bond, there was almost no movement for the year.

Painful digestive period ahead: According to Fisher, the pain that U.S. markets are experiencing is not because of Chinas slowing economy and stock crash, but the withdrawal of Fed stimulus, which now is bringing on a major hangover. Basically, we had a tremendous rally and I think theres a great digestive period thats likely to take place now, and it may continue, because again, we front-loaded at the Federal Reserve an enormous rally in order to accomplish a wealth effect, he noted. So again, I wouldnt be surprised at whats happening. I wouldnt blame it on China; were always looking for excuses.

Overpriced market can correct: Fisher warned that the stock markets are overpriced and overdue for a correction, noting that numerous other analysts on CNBC have made the same observation. I was warning my colleagues, Dont go wobbly if we have a 10% to 20% correction at some point. The markets still overpriced. Everybody you talked to all morning long, from (Blackstone executive) Byron (Wien) on, have been warning that these markets are heavily priced. Were trading at 19 times earnings, were not having the kind of top-line growth we would like to have, were late in the cycle, things are richly priced. Theyre not cheap. They may not be overpriced any longer, but theyre certainly not cheap.

Investing pros are cautious: According to Fisher, who during his time at the Fed made headlines for owning the largest gold stake among his colleagues, he is seeing a lot of cautious positioning now among investment professionals. All of the managers that I talk to in my role at Barclays a lot of people are building cash positions. The long-only investors are being extremely cautious here. They raising their cash levels, are nervous about the valuations in the market. I could see significant downside; I could also see just a flat market for quite some time, again, digesting that enormous return the Fed engineered for almost six years.

Managers are turning to cash in order to prepare to buy assets cheaply if further crashes materialize. Moreover, cash is one of the only major asset classes that didnt sink in 2015. The only thing that really returned anything last year, again if you take away dividends, believe it or not was cash, at 0.1%. Thats a very unusual circumstance, he said.

Fed is now out of ammo: With the Fed now apparently tightening monetary policy and raising rates, true economic fundamentals will hold sway, and the results wont be pretty for many stocks that grew mainly because of central-bank infusions. The Federal Reserve is a giant weapon that has no ammunition left. What I do worry about is that it was the Fed, the Fed, the Fed. For half of my tenure, which was a decade there, everybody was looking for the Fed to float all boats. In my opinion, they got lazy. Now we go back to fundamental analysis, the kind of work that used to be done analyzing whether or not a company truly on its own is going to grow its bottom line and grow its shareholder value and price accordingly, and not just expect the tide to lift all boats. We are going to find out indeed, when the tide lifts, whos wearing a bathing seat and whos not. Markets should be working on their own animal spirits, but they were juiced up by the central banks, including the Federal Reserve.

While stocks still have to endure a stiff correction to return to their natural equilibrium, precious metals began their corrective slide in 2011 and have seemingly bottomed, with gold refusing to fall below $1,050. Now is the time to reallocate portfolios, shifting investment capital from overvalued stocks and into gold and silver before the latter resume their long-overdue ascent.

The U.S. Mints shattered record for sales of its silver American Eagle bullion coins was set on Dec. 15, at which point purchases to authorized wholesalers were halted. The all-time annual high for silver Eagles now stands at 47 million ounces, up almost 7% versus the 2014 record of more than 44 million.

However, sales of the Mints gold bullion coins to authorized purchasers continued through December (except for three denominations that had already sold out in November). Final sales figures are now in for these coins.

Sales of the Mints 2015 gold American Eagle coins hit 801,500 ounces last year. That marks a 52.8% increase over the 2014 sales total of 524,500 ounces.

The Mints other major gold bullion coin, the gold American Buffalo, also enjoyed a strong year. (This coin differs from the gold Eagle in that it is 99.99% gold, as opposed to the gold Eagle, which contains some copper in addition to its full ounce of gold.) The 220,500 ounces sold marked a 24.2% increase over the 177,500 sold in 2014. Last years total was the third-best annual sales performance since the Buffalos introduction in 2006, when 323,000 ounces were sold.

Now that its 2016, get ready for the Mint to roll out new versions of these three bullion coins along with its other offerings of modern proofs and collectibles. Stay tuned to Blanchard and Company for more information on when these 2016 issues will become available later this month.

With gold finishing 2015 down about 10%, some mainstream media outlets are declaring bullion dead on arrival in 2016. But as Jason Hamlin of the GoldStockBull Web site points out, one only has to look beyond the U.S. dollar price of gold to see that the yellow metal still has a lot going for it, especially globally.

Goldactually advanced in most majorcurrencies, Hamlin noted.

To name a few, gold posted gains in the Argentine peso, the Australian dollar, the Brazilian real, the Canadian dollar, the Mexican peso, the Russian ruble, the South African rand, the Turkish lira, and the Ukrainian hrvynia.

Analyzing golds performance in some of these currencies, U.S. Global Investors chief Frank Holmes noted that bullion priced in the Canadian dollar rose by about 7%, while it surged 31% in the Brazilian real.

Gold in fact is up about 17% in Canadian terms over the past two years. Protection from currency trouble is why people own it, and why in the vast majority of places its owners are very happy, added John Rubino of DollarCollapse.com.

Meanwhile, long-term gold investors should be exploiting the dollars strength to their own advantage. With golds biggest decline coming in U.S. dollars, this could bean excellentopportunity to buy gold with dollars during 2016, Hamlin wrote. After a strong start to the year in 2015, the dollar effectively topped out and traded sideways for most of the year. In other words, the dollar may have hit a wall.

With China having succeeded in elevating its yuan (or renminbi) currency to world-reserve status with the IMF, and with numerous nations starting to balk at investing in U.S. Treasuries as the national debt barrels toward $19 trillion, the dollars long-term robustness remains questionable. Now is a great time to hedge your bets by unloading some green paper in exchange for the metal of kings.

Gold kicked off 2016 with its biggest one-day advance in a month, surging Monday by as much as 2% to two-week highs as a weakening Chinese economy shocked global stock markets and crude oil surged after Saudi Arabia cut ties with Iran.

Chinas Caixin manufacturing data for December signaled a contraction in the worlds second-largest economy, and that led to a stunning 7% plunge in the Shanghai Composite Index on Monday. Chinas woes in turn spooked U.S. markets, with the Dow shedding 400 points at one point and getting off to its worst start in 84 years.

This poor start to 2016 follows 2015s lackluster performance. Overall it was the worst year for the Dow since 2008, wrote Michael Snyder of The Economic Collapse blog.But of course the Dow was far from alone. The S&P 500, the Russell 2000 and Dow Transports also all had their worst years since 2008.It was such a down year for stocks that even Warren Buffett lost $11.3 billion in net worth last year.

Meanwhile, Saudi Arabia executed a Shiite cleric, a move that resulted in its Tehran embassy being attacked. Saudi Arabia now has cut diplomatic and commercial ties with Iran and banned travel there. The feud has now sparked rising geopolitical tensions and a boost to oil prices, which in turn is good for gold prices.

We could pick up in the course of two or three weeks all our losses from last year in gold if things heat up in the Middle East, Peter Thomas of the Zaner Group told Bloomberg. Obviously, the slowdown in China is real. With gold and silver at close to production costs, people are thinking, this isnt a bad place to be.

Gold jumped by about 2%, gaining about $20 at the peak of its run and topping $1,080 before falling back. Silver also rose, advancing by 2.7% to hit $14.17.

With strong demand coming from Asia as it gears up for its Lunar New Year holiday in early February, gold could see further gains ahead. Gold was pretty hard hit over the course of last year, Mitsubishi analyst Jonathan Butler said. With index rebalancing probably taking place over the next couple of weeks, we may see some shifting of investment flows back into gold as an underperforming asset.

Gold often seems to benefit at the start of the new year, added David Govett of Marex Spectron.

Just when you thought the U.S. economy couldnt get much worse than the 1.3% GDP forecast issued by the Atlanta Federal Reserve in late December, it did: On Monday the same bank slashed its fourth-quarter estimate to 0.7%!

The news couldnt come on a much grimmer day. After all, the Dow Jones Industrial Average got off to its worst annual start in 84 years Monday by losing as much as 450 points in the wake of a crash on the Shanghai stock market. The carnage was mitigated only by late-session buying.

Meanwhile, the S&P 500 has just as bad of a day. It has opened lower on the first opening day of a trading year on only two prior occasions, according to the Bespoke Investment Group.

This slow start does not bode well for 2016. According to analyst Mark Hulbert, the historical odds of a full-year gain when the first day is positive are 74%, compared with 51% when the stock market fell on the first trading day of the year.

The only things holding up the overall stock market, apparently, are a few winners among a legion of dreck. Calling 2016 the possible start to the emergence of the Stealth Bear Market, Jonathan Krinsky at MKM Partners noted that 2015 was all about a very small number of stocks having a great year, while the majority had a very poor year.

And is it going to get any better? The fourth-quarter earnings season is not looking positive. According to FactSet, earnings for the S&P 500 areexpected to have fallen 4.7% during the final three months of the year, Business Insider noted. It will mark the first time the index has seen three consecutive quarters of year- over-year declines in earnings since Q1 2009 through Q3 2009, FactSets John Butters added.

Back to the crummy GDP, though. Separate economic reports also issued Monday continue to suggest that the U.S. economy is on the cusp of another major slowdown. The Institute for Supply Managements factory gauge showed that manufacturing contracted in December at the fastest pace in more than six years as factories, hobbled by sluggish global growth, cut staff at the end of 2015, Bloomberg reported.

The manufacturing recession is now inevitable, Zero Hedge observed. The only question is when and how it will spread to the service sector and be recognized by the NBER.

Meanwhile, the U.S. Census Bureau reported that construction spending missed expectations of a 0.6% increase to fall 0.4%, the most since June of 2014. And moreover, in another blow to GDP, all construction spending data for the past 10 years has been found to be erroneous.

Finally, two year-end reports confirm that the U.S. economy is sucking on wind. The Dallas Federal Reserves general business activity index plunged to -20.1 in December from -4.9 in November, reflecting the implosion in oil prices in 2015. And the Chicago Business Barometer (or PMI report) unexpectedly plunged to 42.9 in December, itslowest reading since July 2009, Business Insider reported.

Given all these pessimistic economic data, no wonder the Feds vice chairman, Stanley Fischer, was recently talking up the central banks ability to impose negative interest rates to generate benign inflation and growth. And even ultra-liberal economist Robert Reich is warning that the U.S. economy in 2016 is on the edge of recession.

Burning Platform blogger Jim Quinn summed up the global situation in 2016 with this paragraph: The reckless herd has been in control for the last few years, but their recklessness is going to get them slaughtered. Corporate profits are plunging. Labor participation continues to fall. A global recession is in progress. The strong U.S. dollar is crushing exports and profits of international corporations. Real household income remains stagnant, while healthcare, rent, home prices, education, and a myriad of other daily living expenses relentlessly rises. The world is a powder keg, with tensions rising ever higher in the Middle East, Ukraine, Europe, and China. The lessons of history scream for caution at this moment in time, not recklessness. 2016 will be a year of reckoning for the reckless herd.

With GDP expectations falling, the stock market off to a bad start, earnings season looking poor, and the manufacturing sector all but in an official recession, the time to hedge your portfolio from potential losses in equities is now.

Where to turn? Gold and the miners will be the major winner next year as they will be the primary beneficiaries from continued low nominal interest rates, negative real interest rates and a watershed turn in the value of the U.S. dollar, wrote Michael Pento of Pento Portfolio Strategies in predicting bullions return to $1,250 and a stock-market correction of 20%.

Whether Pento is correct in his target price is unclear, but what is more certain is that precious metals have already corrected significantly from all-time highs, while stocks have hardly begun to lose ground. The choice is clear.