This year, silver has been the precious metal that hasn’t been doing too well. Since the opening in January, it has lagged all the down to approximately 3.8 percent. Meanwhile, gold has been up by around 1.4 percent. The numbers are close to those from S&P 500, which has been down by 1.2 percent this year.
Gold Prices In The Market
Gold, meanwhile, is the precious metal that recently saw its price soar to a high of close to $1,365. Analysts estimated numbers that were very close to this and that it marked a notable point away from its trade range as of recently. Gold is believed to not be about to move up any further this year but analysts predict that it might reach around $1,450 before year’s end. If this prediction ends up panning out, analysts believe that silver will also see benefits.
Gold to Silver Ratio And Silver Predictions
The ratio of the gold to silver among investors of precious metals also indicates that silver will soon reach a higher price. At this moment, it is listed at approximately 81. In addition, the range of silver over the past few years has fluctuated between 65 and 85, and the lower the index, the higher silver has been priced. Precious metals followers view this as an indication that silver is set to make a huge change, with minimal risk. If gold elevates, as analysts predict it will, it might equal bitcoin and other equities weakening. Additionally, if the gold to silver ratio decreases by a few points, silver could become considerably worthwhile.
Silver analysts also see a bright future for the precious metal. One analyst who follows silver diligently stated that the next move up for the metal will be huge. Although he has said this repeatedly, it is inevitable that it will become true, probably sooner rather than later.
Silver Has The Current Advantage
At this point, the gold to silver ratio is at a rate at which analysts believe that silver is now preferable to gold. Late analyst Ian McAvity always said that if the gold to silver ratio is greater than 80, you should buy silver, and that, conversely, if it is under that amount and below 40, you should buy gold. These days, however, analysts say the return level for purchasing gold is at around 60 or higher.
However, at the end of the day, precious metal investors know that the price of silver usually follows the price of gold. Analysts predict that gold prices will increase as the conflict between the United States and Russia grows. While things with North Korea seem to have dissipated for the time being, they could potentially arise again. Still, the trade disputes between the US and China seem to get worse every day. This could all have a direct effect on the price of precious metals, particularly gold. Meanwhile, silver may see a marked increase.