Metals: Gold Silver Ratio By Gareth Milliams

The Gold/Silver Ratio is seen by many as an indicator of a recovering market. However, with the crash in silver prices in October, its recovery is probably just an indicator of having been oversold.

The ratio is based upon the gold price divided by that of silver, with 0.75 being the present value. In a strong economy, look for silver to head toward 0.50.

I do expect silver to strengthen in the medium term versus gold to less than 0.70. However, gold is on a journey of its own with a possibility of $1000 per oz. beckoning.

Gold & Silver comparison and ratio in (red)