Gold-Silver Ratio Signals Silver Bull Run Ahead
A recent study has found that the gold-silver ratio remains a relevant technical indicator for forecasting the silver market's trajectory. The gold-silver ratio tells you how many ounces of silver it takes to buy one ounce of gold, given the current spot prices of both metals.
The study, featured in the Silver Institute's Silver News report, found that when the gold-silver ratio rises well above its historical average, it signals that silver is underpriced relative to gold and there is a strong possibility that silver will go on a bull run to close the gap.
Currently, the gold-silver ratio sits at around 67-1. The Silver Institute notes that the ratio has a tendency to revert to its mean of around 60-1, with dips well below equilibrium also occurring.