Low Gold-Silver Ratio May Lead to Outperformance

Mineweb reported that the gold-silver ratio has not risen as high as it has during “other recent gold downturns,” meaning that when gold prices eventually go up again, it is possible that silver prices will also outperform.

As quoted in the market news:

Gold is currently out of favour with the investment community – so silver is too, as the investment sector sees better returns from the general stock market, something that has stood them in good stead over the past two years.

But, perhaps, there should be concern in the markets that mega investors, Warren Buffett, John Paulson and George Soros, have all reportedly been dumping major stocks and there are some respected analysts predicting a major Wall Street crash ahead.  If that materialises, then gold and silver should come back strongly after an initial fallout – as we saw in 2008/2009.

Click here to read the full Mineweb report.