Email of the day on precious metals ratios
I just wonder if there is a chart of the Gold Silver ratio, as well as the HUI to gold and silver stocks to silver ratios available
Thank you for this question and I was just looking at these ratios following what has been an impressive breakout in gold and silver miners. You can recreate these ratios using the Charting function in the Chart Library. Here is a video showing how this can be achieved.
Gold was trading at 80 times the price of silver as recently as early March. The 80 level has been an area where silver begins to outperform gold on at least four occasions since 1995 so this is an important time to pay attention to the ratio because it is looking increasingly likely that silver will outpace gold.
The NYSE Arca Gold BUGS Index / Gold ratio has now broken its downtrend which is a graphic representation of how gold shares now offer leverage to the gold price.
I’m afraid I don’t know of an index for silver miners with the same amount of back history as Gold BUGS has gold but the Global X Silver Miners ETF has been in existence since 2011. It rallied to break its downtrend in mid-February. The ratio has a similar trajectory.