Stretched silver set to shine?
News
|
Posted 26/03/2014
|
3732
The rally this year has seen gold outperform silver, which is not unusual to start with as the silver price often lags but then over takes the gold price gains. This elastic band effect is best depicted in the gold:silver price ratio. The graph below shows that ratio is at its second highest level in 3 years. What’s stretching this ‘elastic band’? Demand! Just 2 current examples… The US Mint is selling Silver Eagles to Gold Eagles at a rate of about 200:1 and another Singaporean bullion dealer has just opened a 600 tonne vault to service huge demand specifically for silver which continues strongly after sales doubled last year.