- Reaction score
It is a buying opportunity for silver. The white metal, which rose at more than twice the rate of gold last year, should continue to outperform its more lustrous peer, say analysts. In the process, it has narrowed its long term gap with gold, known as the gold-silver ratio, although this is currently well above the level it fell to earlier in the year.
The gold to silver ratio measures the relative value of the two precious metals. The higher the ratio, the more expensive gold is relative to silver. On the other hand, the lower the ratio, the more expensive silver is relative to gold.
At the current ratio, one ounce of gold can buy around 53 ounces of silver. The broking firm has advised their clients that the gold to silver ratio will be in the range of 40 to 50 during the year.
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