| The price of gold might fall more than that of silver this year, taking the price ratio between the two precious metals back towards its five-year average. Gold has been on a downtrend as pickup in global economies has reduced demand for this safe asset. This may offer music to the ears of Indian consumers, as they begin to purchase jewellery for the festival and marriage seasons.
ET data show the gold-silver ratio averaged 55.71 in the five years through end-2013. This means 55.71 kg of silver is needed to purchase a kilogram of gold. But, year-to-date, this ratio has climbed to 65.26, as silver has become more undervalued. The ratio was calculated based on average annual prices of front month gold and silver contracts on Multi Commodity Exchange...............................................Full Article: Source
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