The gold:silver ratio

CPM Group/August 2020

“The ratio has corrected from those record high levels but is still at elevated levels, suggesting more potential upside for silver prices relative to gold.  It should be understood that there is no magical number at which this ratio should stand. There are no physical, geologic, chemical, electrical, financial, or other reason why gold and silver should be expected to trade at a given relationship to each other.”

USAGOLD note:  At the same time when the ratio is radically askew as it was over the past few years something has to give. Either gold has to come down relative to silver or silver has to go up relative to gold.  This time around silver has gone up relative to gold and brought the ratio back in line.  What CPM Group is saying in this article is that at the current nearly 73:1 it still might have a ways to go and that, in its opinion, the “upward move could still be quite explosive.”

Line chart showing the gold silver ratiio as of 8-24-2020Chart courtesy of • • • Click to enlarge

Repost from 8-26-2020

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