19 April 2011, 02:04 p.m.
By Kitco News
http://www.kitco.com/
(Kitco News) -- Deutsche Bank sees potential for the gold/silver ratio to fall further, which would indicate outperformance by silver. The ratio is determined by dividing the price of an ounce of gold by an ounce of silver. Shortly before 2 p.m. EDT, it stood at 34.11. “In our view, fiscal worries in the Western world and inflationary fears in the emerging markets will sustain precious-metals risks to the upside,” Deutsche Bank says. “The gold-to-silver ratio has fallen below 35, which could move towards 30 in our view. Historically, during periods of high inflation volatility, gold-to-silver ratios typically ranged between 30-40.”
By Allen Sykora of Kitco News; asykora@kitco.com
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