Trader’s Timeout: Gold/Silver Ratio Recovers as Grey Metal Backtracks
Posted: Wed Aug 10, 2016 6:36 am
This araticle was written by Evdokia Pitsillidou, Risk Management Associate at easyMarkets.
Gold’s premium over silver has improved this month, as the grey metal fell sharply from two-year highs amid renewed dollar strength.
The gold/silver ratio used by investors to determine when to buy and sell precious metals closed at 67.45 on Monday. This essentially states that one ounce of gold is worth 67.45 ounces of silver. The ratio was plunged to around 66 in early August after silver broke new multi-year highs.
Since closing at $20.71 a troy ounce on August 2, silver futures have declined 4%. ... (read more)