Market crisis on cards? A high gold-to-silver price ratio suggests so

The World Gold Council recently said global central banks buying more gold to add to forex reserves was an indicator of a developing crisis

The gold-to-silver price ratio has risen steadily since bottoming out in 2010 to the present trading level of more than 86. What does this really mean for the precious metals going forward? Does that portend a crisis? The Silver Institute, the Washington-based body of silver industry stakeholders, thinks so.

The institute, established in 1971, in its annual World Silver Report, 2019, released on Thursday, said: “When the ratio of gold-to-silver price is high, it points to a looming crisis.” Usually, a ratio above 80 is considered high; and this time, the average ratio in the past year has been higher