Recently, while reading Teacher Han Bing's "Investment Opportunities from a Global Perspective," I came across a special chapter on silver. I must say, the author's understanding of precious metals, especially silver, is indeed profound;

Here are a few insights from the book to share with everyone:

- When analyzing trends, it is necessary to separate gold and silver, even to treat them as two unrelated assets for independent analysis. Consider gold as a precious metal, while silver should primarily be viewed as an industrial product and raw material, and only secondarily as a precious metal;

- Under different economic conditions, the performance of silver and gold varies: during periods of economic growth and lower risk, silver's industrial attributes make it perform better than gold; whereas during economic crises or wartime, gold's safe-haven function becomes more prominent, and gold outperforms silver;

- Between 1990 and 2024 (see chart below), the gold-silver ratio was at its lowest on April 28, 2011, recording 31.73, and at its highest on March 18, 2020, recording 124.18; the rise in the gold-silver ratio during the COVID-19 period to its peak reflects that silver was heavily influenced by industrial demand expectations, as global lockdowns and economic shutdowns at that time likely led to a decrease in silver demand. #XAG #XAU