Gold : Silver Ratio

Current Ratio

82.3077

Price

0.51 (0.62%)

Today's High

81,61

Today's Low

82,27

Last Updated: Mon, 22 Jul 2024 04:18:59 +0000

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* Chart updates automatically once per minute

Follow the gold/silver ratio in real-time with our live updated chart. This chart tracks the ratio’s movements down to the second to help you spot ideal opportunities to buy or sell gold and silver. Since the price of gold and silver changes daily, it’s worth checking this chart frequently to keep track of movements in the market.

What is the gold/silver ratio?

The gold/silver ratio is a representation of how many ounces of silver you need to purchase one ounce of gold. For example, if the gold/silver ratio is 80:1, it means you can purchase 80 ounces of silver per ounce of gold. The use of ounces in precious metals generally refers to troy ounces, with one troy ounce equivalent to 31.1035 grams.

How is the gold/silver ratio calculated?

The gold/silver ratio is calculated by dividing the current market price of gold per ounce by the current price of silver per ounce. For example, if gold costs $2,300 per ounce and silver costs $30 per ounce then the gold/silver ratio would be 2300 divided by 30, or 76. 

How to read the gold/silver ratio

Investors follow the gold/silver ratio to keep track of gold and silver prices and identify the best times to buy or sell their precious metals. Here’s how you can read or interpret the gold/silver ratio: 

  • High gold/silver ratio: A high gold/silver ratio means that silver is relatively undervalued compared to gold. 
  • Low gold/silver ratio: A low gold/silver ratio suggests that gold is relatively undervalued compared to silver. 

While we use the terms ‘high’ and ‘low’ gold/silver ratio, the truth is there is no objective ideal ratio. This is up to each investor to decide for themselves, based on various factors including historical performance and market conditions.

Using the gold/silver ratio for investment decisions

The gold/silver ratio is used by many investors to find the best time to buy and sell silver. When the ratio is high, investors might consider buying silver and selling gold with the expectation that the ratio will eventually drop again. On the other hand, a low ratio might encourage investors to buy gold and sell silver in the hopes of earning a profit when it increases again. 

In most cases, it’s hard-asset enthusiasts who track the gold/silver ratio. Essentially, this means that the focus of using the gold/silver ratio is to increase precious metal holdings rather than increasing dollar-value profits. Here’s an example:

  • You own gold & the gold/silver ratio is high: Let’s say you own a 1oz gold bullion bar and the gold/silver ratio is 100. This is a high ratio, indicating an ideal time to sell gold and buy silver. 
  • You trade your gold for silver: At the gold/silver ratio of 100, you can sell your 1oz gold bar for 100 ounces of silver bullion. 
  • The gold/silver ratio decreases: After you trade in your gold for silver, the ratio drops down to 50. This means you can now sell your 100 ounces of silver bullion to buy two ounces of gold.
  • You profit: You’ve just doubled your initial holdings.

Tips for using the gold/silver ratio

It can be possible to use the gold/silver ratio to increase your holdings of both gold and silver. To help you make the most of this investment decision-making tool, we have some tips below: 

Study the gold/silver ratio history

To be able to properly interpret the gold/silver ratio, you should have a good understanding of its historical movements. This can help you understand how the ratio fluctuated in response to economic cycles, geopolitical events, and changes in supply or demand. With this knowledge, you can better anticipate future movements and consider whether the ratio seems high or low. 

The chart on this page can help you track the gold/silver ratio’s movements over several years. When examining the chart, try to identify long-term & short-term trends, resistance levels, patterns, and any other indicators you think might point to an opportune time to invest in the two precious metals. 

Closely monitor the gold/silver ratio chart

Keep coming back to this page to continue monitoring the ratio’s movements. Checking the gold/silver ratio regularly can help you spot when it seems high or low and anticipate ideal times to buy or sell gold and silver. 

Historical gold/silver ratio movements

The gold/silver ratio has moved a lot throughout history. Throughout Ancient Greece and Ancient Rome, the ratio sat anywhere between 10:1 and 12:1. In the 19th century, the ratio was set at 16:1. During those times, the government set the gold/silver ratio to encourage monetary stability. 

In the more modern era, the ratio fluctuates significantly depending on various factors. It has dipped below 20 on two occasions: once at the end of WW1 and once in 1969 when the US dollar was no longer linked with gold. In 1991, the gold/silver ratio soared to 98 and during the COVID pandemic it reached new highs of 125. 

What is the ideal gold/silver ratio?

Many investors wonder what the gold/silver ratio ‘should’ be, and the truth is that there is no one answer. It’s a topic of ongoing debate and there isn’t a universally agreed-upon figure. 

Some investors believe the ratio should revert to historical averages of around 15 to 20. Others believe that the current range of between 60 and 80 is more reflective of the modern market and it’s unlikely to go back down. That said, it’s best to decide on your own ideal gold/silver ratio based on historical movements and analysis.

What does it mean if the gold/silver ratio increases?

If the gold/silver ratio rises, it usually indicates that silver’s price will decrease compared to gold. In other words, gold will outperform silver. This can mean that gold is overvalued and silver is undervalued, demonstrating an ideal time to purchase silver. 

Things to be aware of when using gold/silver ratio

While many investors successfully use the gold//silver ratio to drive their investment decisions, there are some limitations to using this strategy. It shouldn’t be the only tool driving your decision-making processes for the following reasons:

  • Not always relevant: While analyzing historical performance can sometimes help you predict future movements, it’s not always the case. If you rely solely on the gold/silver ratio’s past movements you might overlook other important factors currently impacting the market, like geopolitical events or economic conditions. 
  • Doesn’t reflect price: The gold/silver ratio is a metric that expresses the value between the two precious metals and doesn’t actually take into account the gold or silver price. 
  • It’s unpredictable: Tracking historical movements can help you predict extreme fluctuations, but there’s no real way to know for sure. For example, you might decide to sell your gold for silver once the ratio hits 110, but it might just continue rising to new extremes over the next few years. In such a situation, you’d be stuck with your silver holdings until the next low.

Buy gold and silver bullion

If you’re interested in purchasing investment-grade gold and silver bullion, you’re in the right place. Browse our extensive collection of gold, silver, platinum, and palladium bars and coins from the world’s best-known mints to start or grow your precious metals portfolio today.