Is This High Gold-Silver Ratio Sustainable?

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April 12, 2019 3:12pm NYSE:SLV

From Allen Sykora: The rise in the gold-silver ratio is unsustainable and will correct, says Richard Baker,¬†editor of the Eureka Miner’s Report. This ratio measures how many ounces of silver it takes to buy an ounce of gold. A rising number means underperformance by silver, and vice-versa. Baker points out that the silver has hit levels not seen since November 2008 during the financial crisis. The ratio was 86.6 Thursday, well above its 10-year average of 66.2. “This suggests silver is very, very cheap relative to the yellow metal, at least in historical terms,” Baker says. “The gold-to-copper ratio, although not extreme, is also elevated considering the safe-haven demand for gold has declined from earlier this year.”



The iShares Silver Trust (SLV) was trading at $14.06 per share on Friday afternoon, up $0.04 (+0.29%). Year-to-date, SLV has declined -12.07%, versus a 9.09% rise in the benchmark S&P 500 index during the same period.

SLV currently has an ETF Daily News SMART Grade of C (Neutral), and is ranked #9 of 35 ETFs in the Precious Metals ETFs category.


This article is brought to you courtesy of Kitco.


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