View full page at metalsmine.com

 

The Gold to Silver Ratio: So What?

From milesfranklin.com

Analysts use this ratio to describe how inexpensive silver is compared to gold—like now. They also use the ratio to show long-term buy zones for both metals. WHY? Silver prices move up and down farther than gold prices. That pushes the gold-silver ratio too high, like now, when silver is inexpensive. Or it pushes the ratio too low, as in January 1980, when silver prices zoomed upward too far and too fast. When the gold to silver ratio exceeds 80, it is often a good time to buy silver. Do the data support this conclusion? Can we quantify this analysis? Examine the chart of the ratio (weekly data) for 35 years, ... (full story)

Story Stats

  • Posted:
  • Category: Educational News