Gold/ Silver Ratio - Historic First - 115 : 1
The gold silver ratio (GSR) has set a new 100 year record, with the value of 1 ounce of gold exceeding over 115 ounces of silver.
I would suspect that the drop in silver is largely due to the global slowdown that we are currently facing from the Coronavirus, as silver is predominantly an industrial metal, given that this slowdown is far from over then the logical conclusion would be that silver's move to the downside is not yet over.
This means that despite the GSR being in excess of 115, then higher levels are entirely possible, and are in fact likely.
This comes on the back of silver making intraday lows, below that of the 2015 lows around $13.65, with silver touching $12.70, this means that we could be seeing silver in the single digits in the not-too-distant future, particularly if the global lock-downs continue.
That being said, we are likely to see some enthusiastic buying at these levels from precious metals investors, particularly with the GSR at these levels.
So a bounce is possible, although i do see lower nominal silver prices going forward, the GSR however, may not display the same one sided move.
Sources:
https://www.macrotrends.net/1441/gold-to-silver-ratio
I would suspect that the drop in silver is largely due to the global slowdown that we are currently facing from the Coronavirus, as silver is predominantly an industrial metal, given that this slowdown is far from over then the logical conclusion would be that silver's move to the downside is not yet over.
This means that despite the GSR being in excess of 115, then higher levels are entirely possible, and are in fact likely.
This comes on the back of silver making intraday lows, below that of the 2015 lows around $13.65, with silver touching $12.70, this means that we could be seeing silver in the single digits in the not-too-distant future, particularly if the global lock-downs continue.
That being said, we are likely to see some enthusiastic buying at these levels from precious metals investors, particularly with the GSR at these levels.
So a bounce is possible, although i do see lower nominal silver prices going forward, the GSR however, may not display the same one sided move.
Sources:
https://www.macrotrends.net/1441/gold-to-silver-ratio
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