What's the general sentiment on the long-term outlook for the gold/silver ratio? With silver's dual role as an industrial metal and precious metal, how do you see it playing out against gold in the next 12-18 months?
I think we'll see the ratio compress over the next 12-18 months. Industrial demand for silver, especially with the push for renewables, seems poised to strengthen significantly.
I'm cautiously optimistic about silver narrowing the gap. If we see inflation persist and real rates stay low, both should do well, but silver might have more room to run given its current relative undervaluation.
It's a tough call. While industrial demand is a factor, let's not forget how sensitive silver is to economic slowdowns. Gold's monetary role might keep it more resilient.
Historically, gold leads the way in initial safe-haven plays, with silver catching up later. I'm leaning towards the ratio staying elevated, or even expanding slightly, before any real compression takes hold.