The silver market is much thinner than gold, mainly because the above ground stock of physical silver is tiny compared to that of gold. So when money comes into the sector, these flows have a greater impact on the silver price than on gold. In other words, silver is more sensitive to money flows and outperforms gold in precious metal bull markets.
Also, traders who are ‘old hands’ in the precious metals market know about this relationship between gold and silver. So these leveraged traders target silver in the expectation of outsized gains relative to gold. I don’t know when or how the stranglehold on both precious metals will be broken, but it will be broken eventually. And the declining gold/silver ratio means it may already have begun."
- Source, King World News
