See the full story at http://www.bloomberg.com/news/2010-08-26/silver-looking-cheap-lures-investors-prompting-decline-in-ratio-to-gold.html
The ratio of gold to silver dropped to a three-week low after gold’s rally to the highest level in eight weeks prompted some investors to buy the white metal.
An ounce of gold bought as little as 64.96 ounces of silver today, the lowest amount since Aug. 5, according to Bloomberg calculations. Silver has outperformed the yellow metal since Aug. 23, gaining 6 percent compared with gold’s 1.4 percent gain, as investors bought the white metal because of its relative cheapness to gold.
“Silver is unique in that it is a precious metal and an industrial metal,” Wallace Ng, executive director of commodities at ABN Amro Bank NV in Hong Kong, said today. “Gold is traditionally viewed as a safe haven but silver is never far behind as a second choice.”
Silver for immediate delivery rose as much as 1.1 percent to $19.11 an ounce, the highest price since June 28, and last traded at $19.0525 at 3:33 p.m. in Singapore. Gold was little changed today after climbing as high as $1,241.50 an ounce yesterday, the highest price in eight weeks.
