Gold-Silver Ratio

by Gary

I've noticed that the ratio of Gold price to Silver Price has hovered in the 50-60 range. Just a couple of months ago, it was close to 60, but now it is around 51 ($1768/$34.71 as of 9-13-12)

However, the daily ratio is much smaller, varying from 20-40. Today, Gold was up (as of this writing) $36.60, Silver up $1.40 - that's a ratio of 26. This is typical of the daily moves.

So the question then is, why is there a different ratio for daily activity versus overall prices? If the overall ratio was 26 instead of 51, the price of silver would be almost $68, which is much more realistic IMO.

It seems there is a recognition of what the true ratio should be on a daily basis, and with silver increasing at a rate twice as fast as gold, it may be only a relatively short amount of time until we have truer value.

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