UNITED STATES July 01 2016 1:17 PM
NEW YORK (Scrap Register): The gold/silver ratio has dropped to the lowest level in more than a year, said Commerzbank.
The ratio measures how many ounces of silver it takes to buy an ounce of gold, with a declining number meaning outperformance by silver. Analysts noted silver made "disproportionately high" gains of 2.9% on Wednesday.
At one point, silver was up by almost 4% and peaked at $18.48 per ounce, its highest level since January 2015.
“Silver has also been outperforming gold so far, with the consequence that the gold/silver ratio has dropped to below 72, its lowest figure in 13 months,” Commerzbank noted.
“Silver is clearly profiting from two different sides at once just now -- from the higher gold price on the one hand, and from firm base metal prices on the other, as silver is used for the most part in industry,” analysts added.