The price of silver is “now only slightly undervalued against gold”: Commerzbank


Editor’s Note: In minutes, discover our quick summary of the must-see news and expert opinions that have moved precious metals and financial markets. Register here!(Kitco News) Gold and silver started the week on a very positive note, up 2% and 5% on the day, respectively. The gold-to-silver ratio is now below 73, which is a sign that silver is catching up with gold, according to Commerzbank. “The fact that the gold / silver ratio is at 73 reveals that silver is only marginally undervalued compared to gold,” writes Commerzbank analyst Carsten Fritsch. ETF entries are one of the drivers of the stronger money rise. “Unlike gold, silver ETFs have seen strong inflows in recent days. ETF investors apparently saw the significantly lower price of silver in the interim as a buying opportunity, ”says Fritsch. Meanwhile, gold sees less demand for ETFs. “Investor interest in ETFs has cooled significantly for a good week now. Friday was the sixth consecutive day of ETF cash outflows – the last time this happened was in mid-March. The outflows are almost entirely attributable to the SPDR Gold Trust, which is mainly used by institutional investors, ”says Fritsch. Gold and Silver are losing support due to the weak US dollar and falling bond yields this week.

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