Gold-Silver Ratio: Silver Breakout Incoming?

Gold prices have reached record highs, while silver remains undervalued, leading to an elevated gold-to-silver ratio of over 90:1. Historically, such ratios have often preceded substantial increases in silver prices, indicating a potential breakout. This surge could be fueled by factors such as inflation, industrial demand, and supply constraints. Silver's industrial applications, including solar panels and electronics, drive its demand. Unlike gold, silver is consumed in industrial processes, limiting its above-ground supply. The historical undervaluation of silver compared to gold could drive up demand and prices. Silver has a history of outperforming gold in percentage gains during rallies, potentially rewarding early investors. The current dip in silver prices could present an opportunity to buy before a potential breakout. Investors should monitor global conflicts and economic events, as they could impact silver's performance.