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Chart of the week: silver is a steal

Silver hasn’t been this cheap relative to gold in a quarter of a century – it now costs more than 85 ounces of silver to buy an ounce of gold.

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This is an excellent time to buy silver, says Wirtschaftswoche's Frank Doll. It hasn't been this cheap relative to gold in a quarter of a century. It costs more than 85 ounces of silver to buy an ounce of gold. Whenever the gold-silver ratio (the gold price divided by the silver price) eclipses 80, it tends to herald a rise in the silver price.

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Other factors bode well, too. Inflation may be on the way, the US Federal Reserve seems less inclined to knock it on the head, and supplies are set to fall: silver is mined as a byproduct of industrial metals, and with metals prices on the slide, less of it will be produced. Industrial demand is enjoying a long-term upswing it has risen by 130% since 1999 as more uses are being found for the white metal.

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Sapiens

Tim Price, PriceValuePartners

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