Last week, I alerted you to the fact that the gold to silver ratio (the price of gold divided by the price of silver) surpassed 80. This has happened only a few times in the last 25 years, and each of those times we have seen that the ratio has never stayed at those high levels long. History, our best gauge for what is to come, shows us that sooner or later the ratio falls to account for the large discrepancy between the gold and silver prices. You can read more in our most recent article, “Is This a Good Time to Buy Silver?” But I will spare you some of the suspense now – the short answer to that question is, “YES!”
Jeff Clark, Senior Precious Metals Analyst for GoldSilver.com, used this chart to illustrate the gold to silver ratio since 1995, along with silver’s gains after the ratio fell from 80. He also sourced The London Bullion Market Association in reference to this chart.