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OPINION

Chart of the day: Gold/Silver Ratio

Chart of the day: Gold/Silver Ratio
May 20, 2015
Chart of the day: Gold/Silver Ratio

Admittedly, the relevance of the ratio has been brought into question ever since the widespread use of physical silver in coinage ceased – that’s saying nothing of the abandonment of the gold standard. The modern historical mean – if we can call it that – stands at around 56:1. The accompanying chart shows that silver is now cheap relative to the price of gold. On Friday, the ratio moved lower from the previous week, closing at around 69:1, moving down from 72:1 a week earlier. Generally, when the gold/silver ratio moves lower, it is a bullish sign for both metals.