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Article In Commodity Trade Mantra
The record stood for 29 years…
In 1991, silver was dirt-cheap relative to gold. Prices for both metals had fallen over the previous year. But silver’s fall was much more dramatic.
As a result, gold became extremely expensive compared with its kooky cousin. That value gap peaked on January 29, 1991…
The gold-to-silver ratio hit its highest level ever. And that record stood… until 2020 came along.
Now, that three-decade record has been broken. Gold is more expensive relative to silver than at any time in the past 40-plus years – going back to when gold first started trading freely in the early ’70s.
Importantly, this value gap won’t last forever. And silver is likely to outperform gold in the coming months as a result.
Let me explain…
Gold is the extrovert at a party. It takes the spotlight at cocktail gatherings. It’s the star in the precious metals market most of the time.
This isn’t a bad thing… But when gold hogs the spotlight, people tend to forget about silver entirely.
That’s exactly what’s happening right now. Investors have driven gold prices through the roof. Meanwhile, silver hasn’t seen the same explosive rally. Check it out…
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