Chart of the week: silver is due to outshine gold
The gold/silver ratio tracks the relative progress of the two monetary metals by dividing the silver price into the gold price, revealing how many ounces of silver it takes to buy an ounce of gold. The ratio is now suggesting that silver has some catching up to do.
When gold rallies and is set to keep performing strongly, silver often does even better: it is also a traditional store of value, and because the silver market is smaller than its gold counterpart, it is prone to sharp ups and downs.
The gold/silver ratio tracks the relative progress of the two monetary metals by dividing the silver price into the gold price, revealing how many ounces of silver it takes to buy an ounce of gold. The ratio is now suggesting that silver has some catching up to do. A few weeks ago it reached 88, the highest reading in nearly 30 years.
The last time it reached a similar level, in early 2016, it slid by nearly a quarter as silver outperformed gold, notes Matt Simpson on City Index. A similar drop now would imply a decline in the ratio to below 75.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Viewpoint
Tim Price, Price Value Partners
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
8 of the best houses for sale with annexes
The best houses with annexes – from a period property in the Lake District to a 13th-century house with a two-bedroom annexe in Saltwood, Kent
By Natasha Langan Published
-
Zelenskyy moves to appease Donald Trump – what happens now?
Ukraine’s president Volodymyr Zelenskyy is conceding ground to secure the least-worst deal possible, says Emily Hohler
By Emily Hohler Published