Gold and silver are precious metals that investor flock to as their safe-haven investments during worrying economic times. When the United Kingdom voted to leave the EU, the pound took a nosedive, dropping to 31-year lows, and investors flocked to safe-havens. That, combined with the Fed waffling on interest rates, and concern that the U.S. is headed toward a recession, made the price of gold and silver shoot up for the past several weeks.
Now though,the markets are looking up, and the S&P 500 and Dow Jones Industrial Average are hitting record highs.
This meant a drop in gold prices, the earlier gold spike $1,367.30/oz falling off two-years highs. Silver though, still held strong, and is only getting stronger.
Gold Down, Silver Up
The gold/silver ratio is a ratio used for determining the number of silver ounces it takes to buy a single ounce of gold. Silver, currently trading at $20.05/oz, is still gaining in price, and while gold dropped 2.3% last week, silver actually rose 1% over the week.
The gold/silver ratio has declined about 10.4% over the past month, and silver prices have gained 15.3% over the same amount of time, out pricing gold’s 2.2% gains.
When markets do well, gold does poorly, usually the same is true of silver… but not today. Silver is doing well, and is expected to continue to rise, thanks to shortages, industrial demand, and technical trading.
Some analysts think we’re headed to into a silver bull run as bright as the one in the 70’s… where silver jumped from $1.25/oz. to $43/oz. That’s one heck of a rise.
It is a good time to buy the dip in silver before it hits $50/oz., and all the profits have been made.