Early Friday morning the gold to silver ratio hit 100 to 1.
This ratio represents what number of ounces of silver it takes to buy one ounce of gold. A ratio of 100 implies that gold is buying and selling at 100 occasions the value of silver, which is traditionally excessive.
The long-term common over the previous century has sometimes ranged between 40 to 60, making the present stage notable for traders.
A excessive ratio usually means that silver could also be undervalued relative to gold, probably signaling a shopping for alternative for silver or indicating uncommon market circumstances in treasured metals.
