The gold-silver ratio is expected to come down in the next few months, with silver outperforming gold, said Todd Horwitz, chief strategist of BubbaTrading.com.
“I’ve think we’ve got a big run coming, I think it’s going to narrow that range in gold, I don’t think gold’s going down. I think silver is going to finally outperform gold over the next two to three months,” Horwitz told Kitco News.
Horwitz said that some of the short positions in silver would be covered when prices head higher, and when that happens, prices would take off even more.
On the upcoming central bank conference in Jackson Hole, Horwitz said that pending equities markets’ performance, the Fed may in fact cut rates before their next meeting in September.
“I think that there’s a chance they could cut before the meeting actually comes. They may talk about it in Jackson Hole, but I think a lot of it will have to do with the actual performance of the stock market,” he said.