Even as Gold prices surge to unprecedented levels, with the upward trend accelerating recently, Silver prices have yet to fully recover from the price decline experienced in early April, according to commodity analyst Carsten Fritsch at Commerzbank.
Silver’s Gains Trail Gold’s Impressive Surge
“Trading just below $33 per troy ounce, Silver remains approximately 4% lower than its five-month peak reached at the end of March. In contrast to Gold’s impressive year-to-date increase of over 30%, Silver’s rise of 13% appears relatively subdued. The comparatively weaker performance of Silver relative to Gold is also evident in the significant increase in the Gold/Silver ratio.”
“This ratio surpassed 100 in early April for the first time in nearly half a decade, peaking at 107 yesterday, a level last observed during the coronavirus pandemic in May 2020. Consequently, Silver is currently undervalued relative to Gold. We believe this disparity is due to the substantial price appreciation of Gold, which is presently exceeding the performance of all other commodities and asset categories.”
