By Allen Sykora
Of Kitco News
(Kitco News) - The gold/silver ratio hit its lowest levels in 13 years this week, and as the bull market continues in precious metals, analysts look for it to fall further as silver outperforms due to the combination of investment and industrial demand.
Nevertheless, some look for the ratio to correct higher in the short to intermediate term. This is largely because of technically oriented factors and since safe-haven demand from large entities might favor gold as geopolitical turmoil continues in North Africa and the Middle East.
The gold/silver ratio is determined by dividing the price of an ounce of gold by the price of an ounce of silver. As the number falls, silver is outperforming, and vice-versa.
Earlier this week, as silver hit a 31-year high, Commerzbank reported that the ratio fell to 41.5 to 1, which it said was the lowest level since February 1998. As of Thursday afternoon, the ratio was around 42.5, down from around 55 as of early November and 64 as of late August. Based on average spot monthly prices going back to 1976, the ratio has averaged around 59...
Read more @ ORIGINAL SOURCE
No comments:
Post a Comment