The G/S Ratio: Broken or Just Waiting to Snap?
Right, let's talk about the gold/silver ratio. My honest take? I think it's become less of a reliable *indicator* and more of a "look at that divergence" tool. Gold's at £3048, silver at £44.93, putting us around 68:1. That's historically high, screaming silver is undervalued. But silver's dual role, industrial versus monetary, really messes with its traditional correlation to gold. Gold attracts central bank buying and pure safe-haven flows that silver often misses. So while a wide ratio *feels* like a coiled spring for silver, I wouldn't bet the farm on an imminent snap back to some historical average like 15:1. It's more a long-term imbalance signal now, in my book.