Page 77 - Introduction to investing in Gold

The Beginner's Guide to Investing in Gold
The gold:silver ratio is the proportional relationship between gold and silver prices. Put simply; it describes how many ounces of silver can be bought with one ounce of gold.
Source: ChartsRUs
As you can see, gold and silver prices seemed to correlate quite closely (the gold and silver lines) up until the last 10-15 years, when this correlation became less pronounced.
The ratio is currently around 85:1, which, as you can see from the chart, is high on a historical basis.
On the one hand, you could argue that the gold price is high and would need to fall to bring the average more in line with historical averages. On the other, there is a view that the price of silver could rise. I will let you form your own view!
It’s important to keep on top of it because the correlation could come back, which could mean a significant move in gold or silver prices. It probably makes sense to also have some silver in your portfolio.
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