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Gold to silver ratio tests three-decade high, eyes 1991 level of 100

This ratio suggests how many ounces of silver can be bought with one ounce of gold

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Traders have been saying that the ratio will not sustain at high levels and silver will start outperforming gold

Rajesh Bhayani Mumbai
The gold-to-silver ratio, which indicates the relative strength of the two metals, is testing the three-decade-high level of 100, seen in February 1991. Currently, the ratio is at 96.5. 

The ratio rises when silver underperforms gold. In the past, whenever the ratio has increased to a very high level, it has never sustained and fallen. The ratio shows how many ounces of silver can be bought with one ounce of gold. 

Traders in India, like their global peers, trade on the basis of this ratio. If they expect the ratio to rise, they buy gold and sell silver.

“The gold-silver ratio is currently