Saad Ullah
● Market analyst Michele "Mish" Schneider recently flagged an important development: the gold-to-silver ratio has bounced back to around 85. This metric, which shows how many ounces of silver equal one ounce of gold, has jumped from lows near 78 in early October as both metals sold off.
● Schneider points out that 85 has historically been a resistance level. If the ratio stalls or reverses here, silver could start outperforming gold—potentially creating a buying opportunity for silver ETFs like $SLV.
● But there's a catch. If the ratio keeps climbing past 85, it suggests gold remains the stronger bet, likely reflecting investor caution around industrial demand and broader economic uncertainty. Tight liquidity or slowing growth could keep pushing investors toward gold as a safe haven, delaying any silver comeback.
● For traders, the setup is straightforward: if resistance holds, silver looks attractive. That would benefit industrial metals and mining stocks. If resistance breaks, gold stays in the driver's seat, and traders might need to adjust positions or hedge.
● This comes as commodities face renewed volatility amid global rate uncertainty. With gold hovering near $2,000 and silver lagging most of the year, how the ratio behaves at 85 could set the tone for precious metals heading into Q4.
Saad Ullah
