FYI. The set US Gold to Silver ratio is 15-1 so 15 Troy ounces of Silver to 1 Troy Ounce of gold. today it sits at over 89 -.1 This is from an article written by Jason Hamlin in 2018. Interesting to note how much the DOW has run up since then. Is the Current Spike in the Gold/Silver Ratio Forecasting Another Stock Market Crash? The ratio typically spikes to extreme levels during the depths of an economic crisis or leading up to a significant correction in the equity markets. The stock market is currently very robust and enjoying an unprecedented 9-year bull market with gains in excess of 300% for the S&P 500 or 400% for the NASDAQ. So the spike is not driven by a crisis that already exists, increasing the odds that we are quickly approaching a major correction in the markets.Why else would investors be favoring gold so strongly over silver during a time of healthy economic growth?The fundamental supply and demand numbers do not support gold's outperformance versus silver. Gold demand fell by 7% in 2017, while silver demand fell just 2%. Supply for both gold and silver fell 4% in 2017, according to estimates by the World Gold Council and Silver Institute.Looking a bit thin on the sell lines now. Its great to see that gold is on a run and interesting that silver hasn't done anything.
My opinion is that silver is not really regarded as much a a precious metal than it is used in industries. Therefore with the slowing of global growth hence the reason for the low price ATM. We are yet to see the real run in silver my opinion. Mr and Mrs Cumberland are waiting patiently on the launch pad!! Sipping Moet!
ARD Price at posting:
2.2¢ Sentiment: Buy Disclosure: Held
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