Silver To S&P 500 Ratio: Why It Signals A Historic Low

Silver priced against the S&P 500 is sitting near its lowest reading in half a century, a level that has preceded every major multi-year silver rally of the past fifty years. In this episode Felix Nikolas Prehn traces two rule changes driving the shift. First, Basel 3 net stable funding requirements now force banks to hold 85 per cent cash backing against unallocated paper silver, pushing them towards physical metal and raising costs on what was once a profit centre. Second, China replace...