The ratio of gold and silver soared to the highest level in 20 years
“According to historical performance, whenever the ratio of gold to silver is much higher than normal (usually 70 to 75), this means that the bottom of the silver price appears. When the ratio of gold to silver exceeds 80, the price of silver is too undervalued relative to the price of gold, which is often one of the most reliable buying signals for silver.”
USAGOLD note: The ratio topped at least temporarily at 92.32 to one in early May. The average ratio, as this article points out, is about 55 to one. “A new round of silver surpassing gold may have begun,” concludes the author.
Chart courtesy of TradingView.com
Re-post from 8-4-2019