Stack Of Growing Silver Coins On The Table. Financial Investment Concept

Silver Price Continues to Underperform Gold, But It Has Plenty Of Time To Catch Up

The comments below are an edited and abridged synopsis of an article by Neil Christensen

Gold has rallied to record highs above $2,200 an ounce; however, the attention is turning to silver as analysts look for that metal to be the next to rally.

Silver Price Continues to Underperform Gold, But It Has Plenty Of Time To Catch Up - BullionBuzz - BMG
Stack of growing silver coins on the table. Financial investment concept

Traditionally, because of its higher volatility, silver outperforms gold in both bear and bull markets. While silver is punished more than gold on the downside, investors have hesitated to jump on silver during rallies.

As gold has seen a surge in bullish momentum, the gold:silver ratio has remained relatively steady, currently trading above 89 points, meaning it takes 89 ounces of silver to equal one ounce of gold. The ratio’s historical average is around 60 points.

Many analysts have said that the health of the global economy will be key to unlocking silver’s bull market.

Carley Garner, co-founder of brokerage firm DeCarley Trading, said that silver can move above $30 an ounce when momentum picks up.

Marcus Garvey, head of commodities strategy at Macquarie, said that silver can outperform gold if the global economy remains strong.

Fawad Razaqzada, founder of Trading Candles, said it might be only a matter of time before silver takes off, breaking through $30 and pushing to $50 an ounce.

“Considering the current rally of approximately +7% this month, the bulls will be keen to prevent any drop below this level. The resistance trend line of the consolidation pattern is situated around $25, with a slight margin of variation. Beyond this point, a horizontal resistance level near $26,” he said. “Therefore, $25 and, subsequently, $26 are the immediate resistance levels that the bulls need to surpass to instigate an upward movement on larger timeframes. If these levels are taken out, it’s plausible to anticipate silver testing its multi-year resistance around $30 next.”