Silver price at 12-year high – Commerzbank
22.10.2024, 11:00

Silver price at 12-year high – Commerzbank

For some time, Silver lagged behind the rise in the price of Gold, Commerzbank’s commodity analyst Carsten Fritsch notes.

Silver has risen more than Gold this year

“This was evident from the increase in the Gold/Silver ratio to almost 90 in August and September. Thereafter, the price ratio fluctuated at around 85 for more than a month. Silver thus managed to track the price movements in Gold. It seems that investors now view Silver as a cheaper alternative to Gold, which would not be surprising given that Gold prices continue to rise and reach new record levels.”

“On Friday, the Silver price rose by more than 6%. The rise continued at the beginning of the week. At just over $34 per troy ounce, Silver is as expensive as it hasn't been in almost 12 years. The Gold/Silver ratio subsequently fell to 80, the lowest level since mid-July. This means that the price ratio is also lower than at the beginning of the year, so Silver has risen more than Gold this year.”

“It is not unusual for Silver to track Gold's price movements disproportionately. A rise of more than 40% from current levels would mark the strongest annual increase since 2020, but would remain well below the 80% rise of 2010.”

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