Silver-Gold Price Ratio Price Forecast

Cassie Bastien

10/19/2017 10:16:12 AM

Daily Gold & Silver Market Report – 10/19/2017

Although we have seen the price of Gold per ounce rise this year, many analysts believe Silver prices will indeed win for the second year in a row. Myra Saefong with SilverSeek said the gray metal is poised for a “big climb, particularly as the Gold-to-Silver ratio stands well above historical averages.” In fact, Paul Mladjenovic, author of Precious Metals Investing For Dummies, said, “I consider [Silver] likely to be the most undervalued asset in the general investment markets.” Furthermore, research director at Precious Metals storage provider GoldCore Mark O’Byrne said due to the massive ratio differences in how many ounces of Silver bullion it takes to equal the value of one ounce of Gold, “It’s a good time to buy Silver bullion. ... The huge amount of Silver used up in industrial applications” suggests the ratio should fall over the long term. “It’s likely that the Gold/Silver ratio will gradually return to below the 100-year average of 40 to 1.” At the current Gold price per ounce, that would put Silver at nearly $32 an ounce. For 2017, Gold price charts have risen 12 percent, while the price of Silver has gained around 6 percent. Mladjenovic makes some solid points, saying Gold is viewed as more of a “pure monetary play, so as more difficulties emerge with paper assets,” such as currencies and debt. Silver, though it holds a smaller market, has “greater ties to industry,” notably in tech products like smartphones and solar power, even the auto industry, and “will do well as markets see greater demand in those sectors.” Regardless of the ratio, market watchers such as Brien Lundin, editor of Gold Newsletter, said, “The main reason Gold has outperformed Silver this year is the U.S. dollar.” However, depending on the Federal Reserve's next move for another interest rate hike, Silver could still make a break for it and finish with a “healthy” 20 percent gain for the year.

Bitcoin Drops More Than 8% in One Day

A report from Business Insider says as of Wednesday, “Bitcoin's price fell by the most in a month on Wednesday after U.S. regulators signaled the cryptocurrency might come under more scrutiny,” editor Akin Oyedele said. The Commodity Futures Trading Commission said Tuesday that virtual tokens used in initial coin offerings, such as Bitcoin, were characterized as securities, thus possibly bringing them under its regulatory scope. With that, investors become worrisome and revert to tangible haven assets such as physical Gold and Silver.  

At 11:16 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,291.20 Up $7.30
• Silver, $17.28 Up $0.22
• Platinum, $929.50 Up $4.90
• Palladium, $968.10 Up $27.20

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (ET)! Or call us Fridays until 6 p.m. (ET)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.