(Kitco News) – Ever-growing strength in the gold market will eventually lead to higher silver prices, according to Randy Smallwood, CEO of Wheaton Precious Metals (NYSE: WPM, TSX: WPM).
In an interview with Kitco News, Smallwood said that he is encouraged by the progress gold had made so far this year. And while he has been disappointed with silver prices, he added that it is only a matter of time before silver outperforms gold.
He explained that although silver’s fundamental outlook continues to support price, the market lacks an emotional spark that will ignite a rally.
“Silver is always late to the party,” he said. “Continued upward momentum in gold will eventually pull silver prices higher and when it does, you will see the market dramatically correct itself,” he said.
Smallwood’s comments come as silver prices trade at their highest level in nearly three weeks and gold trades at a five-week high. May silver futures settled Monday’s session at $16.795 an ounce, up more than 1% on the day. Meanwhile, April gold futures settled the day at $1,355, up 0.38% on the day. The recent underperformance of silver compared to gold has pushed the gold/silver price ratio to a two-year high above 81 points.
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