It’s Time to Start Talking About Silver
While the price of silver typically tracks with the price of gold, the two do not correlate in lockstep. Thus, silver investors use the gold-to-silver ratio to assess silver’s position in the precious metals cycle. This ratio tracks how many ounces of silver is worth one ounce of gold. A declining ratio indicates that the price of silver is getting more expensive relative to gold, while an expanding ratio indicates that silver is getting cheaper. The narrowing ratio suggests that a bull market is in play while an expanding one suggests bear market territory.
