The gold/silver ratio has only been above 100 twice this century: once during the 2008 global financial crisis and again in the early stages of the 2020 pandemic. Could the fact that it is now back above this level be a serious signal? Does it suggest that silver is too cheap relative to historical averages? And can this really be considered a “buying opportunity”?
I am thinking of making a physical investment, i.e. buying gold or silver physically and holding it for the long term, but I am having a hard time deciding: given the current economic outlook, geopolitical risks and market volatility, would gold be a safer haven or silver have more potential? Silver seems cheaper, but will it take longer to rise in price?
Also, instead of allocating all my capital to these two precious metals, should I consider other investment vehicles, such as stock market indices, foreign exchange, bonds, energy commodities, or perhaps crypto assets? Would portfolio diversification make more sense in this period, or would it be better to focus on historical data such as the gold/silver ratio?
What do you think is the most reasonable and strategic approach for a physical investor right now?
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