The gold:silver ratio fell on Friday to its lowest level of the year, indicating silver is now outperforming gold.
It’s not yet clear whether this is a major trend developing or just a blip on the chart. A move below 80:1 would be more meaningful.
A falling gold:silver ratio is generally a healthy sign for a precious metals bull market.
It got as low as 32:1 at the 2011 peak in silver prices and briefly fell below 16:1 during the 1980 manic move higher.
Given that silver still has a long way to go in order to make a new nominal record high above $50/oz, silver can be expected to narrow the price gap with the glitzier metal on its way there.
First, though, bulls will need to see silver break above $26.50/oz – the high point from last year.
About the Author:
Stefan Gleason is CEO of Money Metals Exchange, the company recently named "Best Overall Online Precious Metals Dealer" by Investopedia. A graduate of the University of Florida, Gleason is a seasoned business leader, investor, political strategist, and grassroots activist. Gleason has frequently appeared on national television networks such as CNN, FoxNews, and CNBC and in hundreds of publications such as the Wall Street Journal, TheStreet, and Seeking Alpha.
