The Silver Institute-Oxford Economics/9-29-2022

“While silver’s price movements are often closely correlated with gold, Oxford Economics’ analysis suggests that silver’s return characteristics are sufficiently different from gold to make it a valuable diversification tool that deserves its own portfolio commitment. With over half of global silver demand used in industrial applications, the price of silver tends to be more sensitive than gold to trends in the global industrial cycle, contributing to its higher volatility. Moreover, silver is likely to benefit from an increasingly positive structural demand outlook over the medium term, given its use in many green technologies, indicating that we may be entering a period where the gold-silver price ratio shifts back in favor of silver.”

USAGOLD note: The differentiation of silver from gold in their portfolio roles caught our attention – a point we have never seen made before – at least with such direct logic. Impeccably timed, TSI released this study the day silver gained 9% while gold gained 2.5% – lending support to the thesis stated above that the gold-silver price ratio might shift back to favoring silver.

Gold-silver ratio
(1970 to present)

Chart courtesy of MacroTrends.net