Gold Churns But Silver Finally Returns

Already one trading month of 2021 has been burned, with the price of Gold having mostly been churned. In settling out the week Friday at 1850, it was not only the sixth consecutive trading day during which such price traded, but so it has done in 13 of the past 15 trading days.

Thus should you be casually queried off-the-cuff as to the present price of Gold, your simply responding "1850" without nary a thought and  be fairly spot on, impressively making you appear as one "in the know."

But year-to-date, the precious metals story (albeit somewhat stealthily) is Silver. For have you been watching the Gold/Silver ratio of late? We have as it has its own dedicated cell on our key screen of live data. Which is why for the first time "in forever" we of a sudden sat bolt upright this past Thursday in taking notice of said ratio being sub-70x.

It was nearly four years ago when  that was the last instance of the Gold/Silver ratio being below 70x: 17 April, 2017 at 69.9x. Fast forward to today and the ratio is now 68.4x.

The millennium-to-date average of the Gold/Silver ratio is 66.2x such that 'tis fair to say these two precious metals are well within a standard deviation of having returned to being on "par" with one another. (For those of your caring to include a full generation prior, said average ratio as dated from 1975 is 59.7x). Either way, here's the daily graphic across these past twenty years (plus one month) of the Gold/Silver ratio with its average as having evolved throughout:

Indeed peeking back to The Gold Update of April 4, 2020 ("Gold Losing A Gear As Markets Are Losing their Fear"), we therein penned: "...the Gold/Silver ratio ... [is] a staggeringly high 113.5x, nearly double the millennium-to-date average..." On that date, the price of Silver was 14.53: today at 27.06 it is +86.3% since then; (Gold across the same time frame is but a comparable +12.2%).

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