Dec

19

Here is the ratio of GLD/SLV (gold to silver ETFs), 2006-present.

The mean ratio over the past 5 years is 5.6. From July to October 2008 GLD/SLV spiked — possibly evidencing flight to safety (gold being safer than silver as silver oxidizes and you have to keep polishing it). The ratio gradually declined, then plummeted from August 2010 to April 2011. Over the past 8 months GLD/SLV rose to the current 5.4 - quite near the 5 year mean.

In hindsight, there was some good spread trading in silver and gold [link to music video].


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