Recently the ABC Bullion reported the market update for week ended for March 11 to 15 & said, Silver on verge of break out as sales surge! Gold prices steadied this week, with the precious metal last trading at USD $2,162 per troy ounce (oz). Silver continued to rally, +2% in USD terms, and last trading at USD $24.90oz.
In the past month, silver has rallied by 10%, with the gold to silver ratio falling from 89 to 87 over this period. Silver is looking strong! Silver has lagged gold badly since the huge rally it experienced in 2011, which coincided with the peak in that precious metal bull market cycle.
In the thirteen years since, it has struggled to gain much investor attention, with its underperformance vs gold culminating around the time Covid first hit, when the gold to silver ratio temporarily climbed to more than 115.
Since then, silver has outperformed gold, with the current gold to silver ratio now sitting just above 85 Silver was 9% cheaper vs average silver prices seen during past peaks in gold prices.
At last Fridays price of USD $25oz, silver was still 6% cheaper than prior periods. The GSR suggests silver is substantially undervalued relative to gold, with prior peaks in the gold price occurring with an average GSR of closer to 67. A GSR of 67 suggests that silver could rise toward the USD $31-$32oz price level (which would be a more than 30% rally), even without gold moving higher.
For those looking to buy precious metals, silver is proving very popular at present, with a notable uptick in clients adding silver to the portfolio. That is being driven by multiple factors including how cheap it remains relative to gold given the current GSR that is still above 85. The recent upside momentum in silver, and its track record in precious metal bull markets is also encouraging precious metal bulls.
Product wise, while ABC Bullion silver cast bars are typically our best sellers, coins are also selling at near record levels, owing in part to the special promotion we are running on 1oz silver coins from the Britannia to the Krugerrand, all of which we are selling at a flat $2 above spot.
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