By Daily Crux Editor Brandon Herrin:
Gold and silver often move together in tandem… But this year, silver's return has trumped gold's by a score of 26% to 6%.
Investors purchase silver for many of the same reasons as gold, mostly as a hedge against inflation and geopolitical fears. But since silver has more industrial applications, investors have bid up its price faster than gold on the expectations of an economic recovery.
And if you believe in the gold to silver ratio, which is historically around 16, silver still has a long way to run... The current ratio is over 66, meaning it still takes over 66 ounces of silver to equal one ounce of gold.
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