FAST FIVE: Why The Gold/Silver Ratio Is A Useful Indicator

Published by on

The real reason the gold/silver ratio has tended to fluctuate within a broad but well-defined range is that humans have a vivid visual imagination.

Gold goes up relative to silver, and the gold/silver ratio expands.

At gold's new, higher price, this seems like a lot of money for such a small, though admittedly pretty, thing.

You can buy groceries and bullets with silver coins.

We are nowhere near that point, so expect investor imaginations to work in silver's favor for years to come.

Categories: ZH