Bloomberg analyst: Gold silver price ratio hits high, indicating risky assets may face a lose lose situation
According to BlockBeats, on May 21st, Mike McGlone, Senior Commodity Strategist at Bloomberg Industry Research, stated that the gold to silver ratio typically peaks when the Federal Reserve ends its loose policies - the gold to silver ratio, which reached 100 times on May 20th, is approaching its all-time high quarterly closing level (previously 113 times in the first quarter of 2020). Unlike previous peak periods, the current absence of the key element of Federal Reserve easing may indicate a lose lose situation for risk assets. The current gold to silver ratio (around 100 times) has limited predictive significance for economic trends - if the gold to silver ratio, which reached 100 times on May 20th, remains above 91.5 times by the end of 2025, it will set a historical high year-end ratio, which usually indicates an unfavorable global economic outlook. The peak of this ratio occurred during the US economic recession in 1990-91 and 2020, but this time it lacks a key prerequisite, which is that the loose policy of the Federal Reserve has not yet bottomed out.