|Hunt for the Gold:Silver Low
||25 May 11
Over the past 8 months, silver has seen a spectacular run-up in price,
taking it from $17/oz in August 2010 to an intraday high of almost $50/oz
on Monday, April 25 2011. Correspondingly, the gold:silver price ratio has
dropped over that period from a value of approximately 68:1 down to 31.44:1
at the time of writing. This is a drop of 53.82%, the biggest spike down in
the gold:silver ratio since the Hunt spike in 1979. Back then, the ratio
went from a value of approximately 33:1 down to 13.99 — a drop of
56.61% in approximately 5 months time. Furthermore, silver is now in its
25% most expensive trading days since 1885 when compared to gold, with an
average of the gold:silver ratio of 45.7:1 over the past 125 years.
Enjoy Tom’s latest article!