Citigroup analysts sent a note to their clients last week arguing that silver looks undervalued compared to its pricier yellow cousin, gold.

Their reasoning? The gold-silver ratio is tilted too far toward gold. “The 200-day (gold/silver ratio) moving average is at 47.64, which we suspect will be tested,” analysts wrote. As it stands right now, the gold-silver ratio is hovering around 51.

During the height of the precious metals bull market 30 years ago, the gold-silver ratio fell as low as 16. Think of it like a pendulum that’s set to swing back toward silver. Per Citigroup, if silver can manage to close out a week above $36.55 an ounce, the metal could quickly spike higher toward $45.30 an ounce (a jump of 35 percent from current levels).

Retail investors are showing they like silver coins despite higher prices. Sales of American silver eagles were up to 615,000 this week (above the prior week’s 505,000). For the entire year, the Mint’s sold more than 6.8 million silver eagles.

The big question for precious metals prices going forward is how the story in Greece will play out. Draconian austerity measures could save the Eurozone from debt contagion. Or it could lead to social unrest that just might topple the current regime there. “Austerity measures are like shoes that are too tight,” an opposition leader said recently. “Sooner or later, you want to kick them off.”

Investors seem split on whether or not saving Greece from default is bullish or bearish for metals. Newsletter writer and economist Dennis Gartman is staying in gold as long the turmoil in Greece doesn’t undermine investors’ views of the metal as an alternative store of value (per Barrons).

If investors start growing confident that the worst of the Eurozone’s problems are behind them, though, that could push traders out of safe haven metals and into riskier assets like stocks. Should that happen, look for gold and silver mining stocks to possibly outperform the metals themselves.

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