Special report: What is the gold-silver ratio telling us?

CityIndex/Rhona O’Connell

“Because of silver’s dual nature, both as a precious metal and as an industrial commodity (industrial demand typically constitutes 60% of global silver fabrication demand—i.e. excluding jewelry, coins&bars, silverware and ETPs), it is also valid to look at the silver:copper relationship, and gold:copper occasionally also comes under scrutiny. So we have also looked at how the latter two ratios fared during the same periods that we are looking at with respect to gold and silver, and set them against economic and financial developments to see if there is any consistency.”

USAGOLD note:  O’Connell’s analysis goes a little deeper than we normally see on the gold-silver ratio and comes to the conclusion that it still could go lower. As you can see we are 71 to one at present and the low was 32.75 to one in 2011 when silver hit $48 per ounce.

line chart showing the history of the gold silver ratio since 1998

Courtesy of TradingView.com • • • Click to enlarge

Repost from 1-8-2020

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