gold to silver ratio Today's chart highlights an extreme in the precious metals sector...
Regular DailyWealth readers know that we often like to measure assets in different ways. A simple chart will often tell you a lot. But sometimes it's a good idea to measure one asset against another. These "ratios" can provide a different perspective.
One that we often look at is the
gold-to-silver ratio. A rising ratio shows that gold is expensive relative to silver, and a falling ratio shows that gold is cheap relative to silver. The gold-to-silver ratio historically moves between 50 and 70. But today, it's trading much higher...
As you can see below, the gold-to-silver ratio climbed to more than 80 last week. That means that right now, it takes 80 ounces of silver to buy one ounce of gold. The ratio has only been this "stretched" a few other times in history. This extreme reading suggests that silver is a better value than gold today...