Precious metal investors who have ridden the gold bull rally might want to switch some exposure to silver judging by an indicative valuation metric.
The yellow metal has risen an astonishing 26 per cent in 2016 thanks to various macroeconomic events and its rise means the gold/silver ratio - the amount of silver it takes to purchase one ounce of gold - now stands at 71, or 11 per cent in advance of the five-year average.
When the ratio is relatively high, it is generally held that silver should be favoured; conversely, a low ratio should get gold bugs going.