Gold and silver are stronger – does the rally continue?

Both the gold and silver prices have developed extremely strongly in recent weeks. Gold is currently trading at $ 1,877, not far below the all-time high of $ 1,921 marked in 2011. Silver has recently been able to grow even faster than its big brother, gold. One troy ounce is currently trading at $ 22.62.

Heading for a record
“After the massive inflow of over 460 tons into the silver ETFs reported for Wednesday, the current month is heading for a record inflow,” explains commodities expert Eugen Weinberg from Commerzbank. “This is currently still held in July 2019. With the recent sharp price increase, silver has now overtaken gold: of the four exchange-traded precious metals, it now has the best price development since the beginning of the year.”

Big catch-up
Was that the starting signal for the big catch-up movement of silver? Should the gold / silver ratio move towards its long-term average again, the silver price would develop significantly better than gold. On the basis of the past 20 and 100 years, average values of 60 and 47 are established. At the time of the all-time high of silver, a ratio of 32 was even reached. We are a long way from such a scenario, but at the current gold price this would mean a silver price of over $ 58.