The Gold to Silver ratio has broken out. It has an upside target of 90. We discuss the significance of the breakout and what it means for Silver moving forward.
We review 5 historical lows in Silver and 5 historical peaks in the Gold to Silver ratio. If the ratio peaks because of a crash low in the sector, then Silver can outperform Gold immediately after the peak. If the low is not a crash low, then Gold can outperform Silver even after the sector bottom in which Silver is rising.