207 days ago • Posted by Charles-Henry Monchau

Spot Silver surged above $28

Silver prices were up 25% in July, the second-biggest monthly gain for the white metal on record, and are extending gains this week, with spot silver spiking above $28 this morning. Is there more to go for the white metal? It is worth highlighting that the silver-gold ratio remains historically wide. The silver-gold ratio is simply the number of ounces of silver it takes to buy one ounce of gold. It has been historically high for months. It was well over 100-1 back in March. It dropped to about 75-1 this morning (its lowest since April 2017), but that is still high by historical standards. The modern average over the last century has been between 40 and 60-1. If the ratio normalizes, the long silver / short gold still has a lot of upside, i.e Gold underperformance vs. Silver should continue (source: www.zerohedge.com).

Gold to Silver ratio