Silver's Outperformance Of Gold
With everyone focusing exclusively on gold these days, what has received little media attention is that over the past year, silver has actually outperformed gold substantially, and on a relative basis the comparable outperformance has been material. The chart below is a simple relationship between the spot price of gold and silver. As the declining line demonstrates, while the Gold/Silver price ratio at the end of 2008 was 84, it has now dropped to to just under 62. For the Fibonacci fans, that represents a 0.50 retracement. With Gold popping, will silver continue its price acceleration as it attempts to hit the lower trendline, which crosses at about 52, and implies a silver price of $22/ounce?