🟡 BMO: Gold/Silver Ratio Could Be Near Historic Low
Bank of Montreal (BMO) analysts warn that the gold‑to‑silver price ratio — a key gauge of the relative valuations between gold and silver — may be approaching its lowest level in years, signaling a remarkable shift as silver outperforms gold amid strong speculative and industrial demand. This could mean silver’s recent gains have been significant relative to gold.
Key Facts:
📊 Historic compression: The gold/silver ratio has fallen to around 50 : 1, its lowest since about March 2012, after peaking above 100 : 1 in 2025.
🪙 Silver strength: Silver prices have pushed back above $91–93/oz, benefiting from speculative momentum and industrial demand.
📉 Compared to gold: This decline suggests silver has caught up with gold in relative performance, reducing the historical spread between the two metals.
🧠 Market view: While this doesn’t guarantee future direction, such low ratios historically mark turning points where the balance between gold and silver valuations shifts.
Expert Insight:
A compressed ratio often reflects strong relative performance from silver, but analysts also caution that markets can fluctuate — and ratio extremes tend to revert over time. Investors use this metric to assess which metal could outperform next.
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