Silver May Be The Best Investment Value Today

The gold:silver ratio is a good barometer of gold and silver prices. The extremely simple ratio indicates how much silver it takes to purchase one ounce of gold. The ratio currently sits at around 69.5, which is well above the five-year average level of 50-60. This is still much higher than the 100-year average of around 40. To me this indicates that silver is undervalued and that any further gains for precious metals will see silver continue to outperform gold. The industrial uses of silver should also help the gold:silver ratio narrow back to normal levels and in the future possibly go much lower.

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