Gold is surging, but silver could go ‘parabolic’ as precious metal ratio narrows – by Victor Ferreira (Financial Post – July 28, 2020)

https://financialpost.com/

Silver has risen 33 per cent in four months, and analysts see it hitting $30

The price of silver has shot up 34 per cent since the beginning of July in a whirlwind rally that has made some analysts more bullish on the precious metal than they are on its more beloved sibling, gold.

In truth, silver has been widely outperforming gold since the two bottomed in March, but it has received far less attention. Since March 18, the price of gold has rallied 33 per cent and grown in appeal for investors trying to hedge their portfolios against slow economic recovery, inflationary risk and currency devaluation.

In that same period, silver prices more than doubled and rallied nearly 108 per cent to reach a trading level not seen since 2013.

“Silver has an opportunity to go parabolic,” Crescat Capital portfolio manager Tavi Costa said. “We’re far away from done in terms of the rally. I still think silver will outperform gold going forward and will be one of the best performing assets of the year.”

Costa likes silver because it is a play on the same macro thesis, but offers investors more opportunity.

For the rest of this article: https://financialpost.com/investing/gold-is-surging-but-silver-could-go-parabolic-as-precious-metal-ratio-narrows