MTECHTIPS Gold, Silver: Comparisons to real estate and fiat currency printing rates

MTECHTIPS:-Gold, Silver: Comparisons to real estate and fiat currency printing rates

The natural ratio of the occurrence of silver to gold in the ground is typically estimated at roughly nine ounces of silver to one ounce of gold, and yet the recent trading price ratio of 62 to one is almost seven times higher.After contemplating this curious anomaly, one is left wondering if comparisons between gold and silver may be as fruitful as comparing silver investment demand and silver industrial demand.A relationship certainly exists between the availability of these precious metals and their relative prices, but it always seems rather abstract.Trading ratios, mining supply and investment grade metals The recent 62 to 1 trading ratio of silver to gold clearly favors buying silver over gold, especially given a host of other favorable factors.These include: bullish fundamentals, a likely bottoming technical picture in an oversold environment and a favorable COT sentiment structure. Furthermore, from a historical perspective, silver’s price has traded at a much lower 13 to 1 ratio relative to that of gold on average, making the precious grey metal seem very cheap relative to its yellow alternative.