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Silver out of the spotlight and in gold's shadow

HYCM

By Giles Coghlan, Chief Currency Analyst at HYCM

Gold pushes higher again

The high gold prices push away retail buyers. The retail sector accounts for around a third of all buyers, so the higher prices have been discouraging demand. However, the rise in ETF inflows has virtually matched 2019's drop in consumer demand. See the chart below:


However, the gold/silver ratio has dropped recently after hitting some of the highest levels since July 2019 last week. This means that if the safe haven rush continues silver offers better value than gold. The last few pushes higher in gold since the start of 2020 have been led by geopolitical concern and any further concerns will be needed for gold's next push higher.


Silver is trading over 50% from its all-time high while gold is just under 20% off it's high. So, one to watch as silver sneaks out of the spotlight.

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