Even as Gold prices surge to unprecedented levels, with the upward trend accelerating recently, Silver prices have yet to fully recover from the decline experienced in early April, according to commodity analyst Carsten Fritsch at Commerzbank.
Silver’s Performance Trails Gold’s Impressive Surge
“Priced just under $33 per troy ounce, Silver remains approximately 4% below its five-month peak from late March. When juxtaposed with Gold’s impressive year-to-date increase of over 30%, Silver’s 13% gain appears relatively restrained. The comparatively subdued price movement of Silver, relative to Gold, is also evident in the substantial 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 not observed since the initial stages of the coronavirus pandemic in May 2020. Consequently, Silver appears significantly undervalued compared to Gold. We believe this disparity is attributable to the rapid appreciation of Gold, which is currently exceeding the performance of all other commodities and asset categories.”
