~*~Mining and Metals Du Jour~*~

[srm4u]

Is the Current Spike in the Gold/Silver Ratio Forecasting Another Stock Market Crash?
The ratio typically spikes to extreme levels during the depths of an economic crisis or leading up to a significant correction in the equity markets. The stock market is currently very robust and enjoying an unprecedented 9-year bull market with gains in excess of 300% for the S&P 500 or 400% for the NASDAQ. So the spike is not driven by a crisis that already exists, increasing the odds that we are quickly approaching a major correction in the markets.

Why else would investors be favoring gold so strongly over silver during a time of healthy economic growth?

The fundamental supply and demand numbers do not support gold's outperformance versus silver. Gold demand fell by 7% in 2017, while silver demand fell just 2%. Supply for both gold and silver fell 4% in 2017, according to estimates by the World Gold Council and Silver Institute.

https://seekingalpha.com/article/4205481-gold-silver-ratio-spikes-highest-level-27-years
https://seekingalpha.com/article/4254869-gold-silver-ratio-continues-rise-precious-metals-supply-demand