IAU - We Live In Strange Times For Gold And Silver

2025-04-28 09:07:59 ET

Summary

• The Gold:Silver ratio has breached 100 for the fifth time in modern history, indicating significant market dislocation and potential investment opportunities in precious metals.
• Gold is currently outperforming silver due to economic and political instability, making silver a more attractive buy for potential mean reversion.
• I recommend adding silver to an existing gold position rather than selling gold, as both metals have bullish prospects in the medium term.
• Consider the Sprott Physical Gold and Silver Trust for balanced exposure to both metals, capitalizing on silver's potential catch-up to gold.

Introduction

Over the course of modern financial history, we have only seen the gold/silver ratio, which I'll just be writing as "Gold:Silver" from here-on-out, pass 100 a few times. The last few times this happened were major crises, like the COVID-19 pandemic. This chart goes back as far as I can with YCharts' previous metal pricing data....

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