Is Silver Catching Up to Gold?

Author: USGI
Date Posted: April 18, 2016 Read time: 1 min

Daniela Cambone of Kitco News welcomes Frank Holmes back for another episode of Gold Game Film, this time to discuss the gold/silver ratio. One ounce of gold buys the least ounces of silver this year, and given the industrial component to silver’s price, Daniela wants to know if this means brighter times ahead for the global economy.

Daniela Cambone of Kitco News welcomes Frank Holmes back for another episode of Gold Game Film, this time to discuss the gold/silver ratio. One ounce of gold buys the least ounces of silver this year, and given the industrial component to silver’s price, Daniela wants to know if this means brighter times ahead for the global economy.

Frank says that yes, he believes so, pointing specifically to the global purchasing managers’ index (PMI) as a key factor. He explains that more and more silver is being used in health care, especially with an aging population, and more silver is also being consumed in the solar energy space.

“When you add that up, it’s pretty bullish,” he said.

Watch the full episode of Gold Game Film below!

 

   Read Frank Holmes’ recent post on gold: Why One Analyst Believes Gold Could Hit $3,000 an Ounce

 

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.

The Purchasing Manager’s Index is an indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.