Even as Gold prices surge to unprecedented levels, with the upward trend accelerating recently, Silver’s price has yet to fully recover from the decline experienced in early April, according to commodity analyst Carsten Fritsch at Commerzbank.
Silver’s Performance Trails Behind Gold’s Impressive Surge
“Priced just under $33 per troy ounce, Silver remains approximately 4% below its five-month peak reached at the end of March. When contrasted with Gold’s increase of over 30% since the start of the year, Silver’s 13% gain appears relatively subdued. The notable underperformance 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 compared 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.”
