Silver Futures Fall to $21.79 an Ounce as Gold/Silver Ratio Rises

Today in New York, silver futures for December delivery fell $0.13, to $21.79 an ounce, Bloomberg reported. The drop followed a US Federal Reserve official’s announcement that the central bank could begin to reduce quantitative easing as early as next month.

The gold/silver ratio — the number of silver ounces needed to purchase an ounce of gold — reached its highest level since mid-August due to silver’s decline today, hitting 61.1, according to Reuters.

“In our view, the link between gold and silver market selling reflects the long-established gold-to-silver price ratio, the variations of which have historically occurred within a well-defined range,” Reuters quotes Morgan Stanley as saying.