Silver Shoots Up as “Too Cheap”
The silver rose to a new maximum level in almost two months today as the investors were attracted into buying this commodity due to it relatively cheap ratio compared to gold. The gold/silver ratio declines significantly.
Although precious metals aren’t traded in pairs, silver and other such commodities is often compared with each other to find the good investment opportunities, taking ratios into account. Silver benefits as another safe haven asset after the gold and also as an industrial metal, so it’s usually valued at a same ratio compared with gold and when it offers some opportunity investors go in.
Analysts believe that the current level of silver is “too cheap”. Some of them expect an almost forgotten level of $20 soon, which would be the highest price for this metal since early 2008. While gold is trading quite close to its
Spot silver prices rose from $18.88 to $19.09 as of 15:54 GMT today. It’s value ratio with gold is about 64.7, which is still quite high.
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