| The price of silver has softened by 2.3% since the start of 2014. Yet the price of gold has rallied, spiking a healthy 5% over the same period. This is contrary to the historical correlation that has existed between the two metals, with silver typically following gold. We have seen a key measure of this correlation, the gold-to-silver ratio, continue to widen. The gold-to-silver ratio represents the number of ounces of silver required to buy one ounce of gold.
There are those who argue the ratio should sit somewhere between nine and 19, representing both where the ratio has sat historically and the natural occurrence of silver compared to gold. But with the ratio having topped out at 100 twice in the last 40 years, once in 1980 and again in 1991, it is a fluid measure of the value of silver in comparison to gold...............................................Full Article: Source
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