The current gold-silver ratio is at its lowest level in nearly 14 years, indicating that silver is becoming unusually "expensive" relative to gold.
● International market: the gold-silver ratio is about 46.4. ● Domestic market: due to differences in VAT policies (silver is taxed at 13% VAT), the domestic gold-silver ratio is even lower, having fallen to around 40.4. What does this mean? The long-term historical average of the gold-silver ratio is between 60-70. When the ratio drops below 50, it usually indicates that silver's rally has outpaced gold, and market sentiment is very hot. Therefore, it is advisable to seize opportunities to buy maximum gold and short silver.
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The current gold-silver ratio is at its lowest level in nearly 14 years, indicating that silver is becoming unusually "expensive" relative to gold.
● International market: the gold-silver ratio is about 46.4.
● Domestic market: due to differences in VAT policies (silver is taxed at 13% VAT), the domestic gold-silver ratio is even lower, having fallen to around 40.4.
What does this mean?
The long-term historical average of the gold-silver ratio is between 60-70. When the ratio drops below 50, it usually indicates that silver's rally has outpaced gold, and market sentiment is very hot.
Therefore, it is advisable to seize opportunities to buy maximum gold and short silver.