The gold/silver ratio is over 90, a level not seen since 1993


From Rajesh Bhayani:

The price of silver in comparison to gold is at a 26-year low. This comparison is derived by calculating the ratio of the price of gold to silver. The ratio is the amount of silver that can be bought with one ounce of gold.

Currently, the ratio is at 90, the highest point since March 1993. A higher ratio indicates silver is much cheaper than gold. If silver is so cheap in relative terms, should investors look at buying? Near-term prospects are bright Experts and analysts say in the near term, silver may give healthy returns, and that the gold-to-silver ratio may fall to 80 .

The iShares Silver Trust (SLV) rose $0.01 (+0.07%) in after-hours trading Monday. Year-to-date, SLV has declined -13.07%, versus a 8.87% 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 34 ETFs in the Precious Metals ETFs category.

This article is brought to you courtesy of Business Standard.