By Gary Christenson – Re-Blogged From Gold Eagle
Analysts use this ratio to describe how inexpensive silver is compared to gold—like now. They also use the ratio to show long-term buy zones for both metals.
Silver prices move up and down farther than gold prices. That pushes the gold-silver ratio too high, like now, when silver is inexpensive. Or it pushes the ratio too low, as in January 1980, when silver prices zoomed upward too far and too fast.
When the gold to silver ratio exceeds 80, it is often a good time to buy silver.