Gold-Silver Ratio Remains Relevant Technical Indicator: Silver Institute

A recent study by the Silver Institute found that the gold-silver ratio remains a relevant technical indicator for forecasting the silver market's trajectory. The ratio, which measures how many ounces of silver it takes to buy one ounce of gold given current spot prices, tends to revert to a mean of around 60-1.

The study noted that when the gold-silver ratio rises above its historical average, it signals that silver is underpriced relative to gold and there's a strong possibility of a bull run. Conversely, when the ratio drops significantly below 60-1, it will revert to the mean with a silver selloff or gold price surge.

Currently, the gold-silver ratio sits at around 67-1, still above its historical average. According to the Silver Institute, 'The tendency for the gold-silver ratio cyclically to rise above and fall below its long-run equilibrium has not changed.'