Recently all of the focus has been on gold, with news that Venezuela shifted reserves to Switzerland, and queues for gold in London, gold has risen substantially.  This has offered up an unusual potential opportunity- the gold/silver ratio.

As of two weeks ago, gold prices had outpriced silver to a ratio of approximately 83- a ratio which was higher than gold’s peak in the height of the financial turmoil during the Financial Crisis (Nov. 2008). It should noted that Gold then fell against Silver to around 32 by 2011.

The gold to silver ratio over the past 10 years (courtesy of 

In fact, taking data going back to the 1980s (silver’s historical peak in real terms) the gold to silver ratio has dropped below the 20 mark.  This suggests a possible market opportunity.


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