Silver Trading Surge Crushes Gold/Silver Ratio as Brexit Spurs Central-Bank QE Expectations

Submitted by Adrian Ash, Bullion Vault on Mon, 07/04/2016 – 13:50
SILVER TRADING sent prices shooting higher overnight Monday, touching 2-year highs above $21 per ounce as Asian stockmarkets also rose sharply amid talk of fresh central-bank stimulus to avoid economic damage from the UK’s Brexit vote to leave the European Union.

That crushed the Gold/Silver Ratio of the two precious metals’ relative prices to its lowest level since 2014, down sharply from January’s fresh 7-year highs.
Daily chart of the Gold/Silver Ratio, basis London benchmark, last decade

“Had we been in the London or NY time zone,” says a trading note from David Govett at brokers Marex Spectron in London, “it is highly unlikely that [silver] would have risen...