The gold:silver ratio fell on Friday to its lowest level of the year, indicating silver is now outperforming gold.
It’s not yet clear whether this is a major trend developing or just a blip on the chart. A move below 80:1 would be more meaningful.
A falling gold:silver ratio is generally a healthy sign for a precious metals bull market.
It got as low as 32:1 at the 2011 peak in silver prices and briefly fell below 16:1 during the 1980 manic move higher.
Given that silver still has a long way to go in order to make a new nominal record high above $50/oz, silver can be expected to narrow the price gap with the glitzier metal on its way there.
First, though, bulls will need to see silver break above $26.50/oz – the high point from last year.
