Gold Prices Are Crushing Silver. Why That Could Change Soon

By Ian Salisbury – Barron’s

It’s been a great time for gold investors. A slew of factors, including inflation worries, demand from central banks, and uncertainty surrounding the Trump administration’s trade war have combined to send the metal up 23% so far this year to nearly $3,232 an ounce, for near-month contracts on Comex, according to Dow Jones Markets Data.

Silver, also historically as a safe haven whose price tends to track that of gold, has rallied too, but nearly dramatically. Silver prices have gained about 10% this year to just under $2 an ounce.

The difference has investors talking. Gold’s big rally means its now trading roughly 100 times the price of silver, a premium it has achieved only a handful of times in the past, most recently in March 2020, the early days of the Covid pandemic.

More typically gold trades in a range of 40 to 60 times the price of silver