by Alasdair MacLeod
Gold Money
Gold and silver continued to rally in lacklustre trading this week, and our headline chart shows that silver has now regained the losses since the start of the year, while gold is still 6% under water. In morning trading in the European time-zone, gold was at $1785, up $9 from last Friday’s close, and silver at $26.08, up 15 cents on the same time frame.
Silver has outperformed gold since the lows at the beginning of the month, driving the gold/silver ratio down slightly to 68.5. This is our next chart.
Having peaked at an all-time high of 125 on 19 March 2020, silver relative to sound money (gold) has almost doubled. For a monetary metal which over 150 years moved from a ratio of 16 to 125 was a major bear market, followed by an equally important turning point. Now that silver is in a bullish phase, we can see that the pecked line is a major support line for silver priced in gold. And the rally back towards it last April looks like a test that has been passed.