GOLD2,680.400.42%
INTEREST RATES4.62%0.03%
SILVER31.241.12%
US DOLLAR104.280.18%
FEAR INDEX14.202.40%
PRECIOUS METALS

Gold/Silver Ratio

How many ounces of silver to buy one ounce of gold

Live Gold/Silver Ratio

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MARKET ANALYSIS

Understanding the Gold/Silver Ratio

What is the Gold/Silver Ratio?

The gold/silver ratio represents how many ounces of silver are needed to purchase one ounce of gold. At 88:1, you would need 88 ounces of silver to buy one ounce of gold. This ratio helps traders determine relative value and optimal timing for swapping between the metals.

Historical Context

For most of human history, the ratio stayed between 10:1 and 20:1 (matching the geological ratio in Earth's crust of about 17:1). The current 80-90:1 range is historically extreme, suggesting silver may be significantly undervalued relative to gold.

Trading Strategy

Some traders use the ratio to rotate between gold and silver. When the ratio is high (80+), they favor silver expecting it to outperform. When low (40-50), they favor gold. This strategy aims to accumulate more total ounces over time by trading the relative values.

Related Tools

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