Silver Outshining Gold? Is Metal Signaling a Global Economic Turnaround

from Kitco NEWS

One ounce of gold buys the least ounces of silver this year, and given the industrial component to silver’s price, could this be signaling a turnaround in the global economy? The best performing precious metal for the week was silver, up 5.66 percent, says Frank Holmes, CEO of U.S. Global Investors. ‘Silver has overtaken gold as the year’s best performing precious metal, extending its gains to 17 percent on the back of a stabilizing Chinese economy. The precious metal, which is used in a variety of industrial products, is now trading at a five-month high,’ he said in an interview with Kitco News. The gold/silver ratio is now at levels last seen in December 2015 – sitting at around 76 – it shows silver is catching up to gold, Holmes explained. More than 50 precent of global demand for silver comes from industry. During the week to April 12, Comex June gold rose $24.50, or 2%, to $1,257.40 an ounce. May silver climbed $1.075, or 7.1%, to $16.215. As of 10:21 a.m. EDT on Monday, however, June gold had fallen back to $1,235.80, although May silver had made further gains to $16.245.

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