Investing.com: Are Silver Prices Set for a Breakout?
Article by Investing.com
Silver may be setting up for a breakout, according to Sevens Report’s Tom Essaye, who highlights a rare divergence between gold and silver pricing that could soon correct in favor of the latter.
While gold continues to dominate headlines with new record highs above $3,000 an ounce, silver has quietly posted a 16% gain year-to-date. Yet, relative to gold’s 25% surge, it appears undervalued.
“The Gold-to-Silver Ratio (GSR) is a simple and compelling measure with historical significance. It tells you how many ounces of silver it takes to buy one ounce of gold. Today, that number is around 100:1,” Essaye said in a Thursday report.
“Typically, it runs between 40:1 and 60:1, and it doesn’t get above 100 very often,” he added.
Historically, such stretched ratios have been followed by ......