from Hang The Bankers:
Silver has surged over 40% since the beginning of 2016, making it the number performing commodity of 2016.
But is the surge of the precious metal just the beginning of things to come?
Historically the price of silver tends to track the price of gold as both are seen as monetary metals.
Silver is often more volatile, however, experiencing larger up and downswings with market movements. Essentially, silver could be explained as gold on steroids.
Despite coming out of the ground at a ratio of 9:1, the price ratio of silver to gold currently sits at around 65:1.
With today’s price of silver at AU$26.5p/oz and gold $1755p/oz, we would have to see silver at around $195p/oz to see that ratio balance out.
That’s a 700% gain in the price of silver that would need to take place.
With some of the world’s wealthiest people now buying up gold, it may be worth getting some silver exposure to catch any up movements in the yellow metal.
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