SILVER IS CHEAP
Another reason to consider silver as a chaos hedge: It's cheap relative to gold, its precious-metal cousin.
As you can see from our chart of the week, silver and gold trade in a "band" relative to each other. This band is called the gold/silver ratio.
Generally speaking, silver is expensive relative to gold when the ratio sinks below 50. This is a reading that typically occurs after silver has enjoyed a huge run higher. Silver is cheap relative to gold when the ratio is above 70.
Right now, the gold/silver ratio is around 70... which leaves silver in the "cheap" category.
– Brian Hunt
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