Saad Ullah
⬤ Silver has reached record prices - yet long term data indicate it remains far cheaper relative to gold than history suggests is normal. The present price gap mirrors the 2020 moment when silver changed hands at roughly twelve dollars per ounce. The gold silver ratio shows silver priced at more than double its 2011 mark underscoring how far the spot price diverges from relative value.
⬤ Over fifty years of gold silver ratio history reveal cycles where the ratio plunged as silver outran gold. Sharp lows appeared in the late 1970s, the mid-2000s and early 2020, each a period when silver gained heavily against gold. The current ratio sits far above those lows underscoring that silver remains cheap relative to gold even after touching new highs.
⬤ The ratio has swung between long peaks and steep drops, often followed by strong silver moves. A return to the 2015 ratio would mean a doubling of silver versus gold. Previous collapses in the ratio have repeatedly coincided with silver bull phases.
⬤ The valuation gap between silver and gold remains central to investor mood. Silver is at record prices while the ratio still calls it undervalued, a setup that may fuel discussion of a possible rebalancing across precious metals and the next leg in silver's long term rise.
Saad Ullah
