Gold to Silver Ratio - All Time
|Alltime Change||+54.38 (+297.00%)|
Gold : Silver Ratio
The gold: silver ratio is the relationship between the respective spot prices of gold and silver, i.e. the amount of silver needed to buy a troy ounce of gold.
Both precious metals are influenced by some of the same factors. Their prices tend to rise during times of economic instability, when investors look for safe-haven assets that they can trust to store their wealth better than the banks. However, as we can see from the huge fluctuations in the ratio throughout time, their prices rise and fall at different rates.
The 5 years following the metals' peak in April 2011 are a great example of this. The spot prices for both gold and silver have fallen significantly, but silver has fallen much further than gold. This may be because of other influences such as mining supply or industrial demand, though in truth it is not always possible to know. What can be seen from the chart, however, is that the current ratio is considerably higher than its historical average.
Historical gold: silver ratio charts allow you to determine which of the metals may be a stronger investment by comparing the current ratio with its historical position. For example, the chart shows that silver has always been considerably cheaper than gold, so at a time when the ratio might be particularly low, an individual may choose to invest in gold bars or coins, rather than silver bars or coins, expecting the latter’s price to drop. Similarly, if the ratio is particularly high, an investor might choose to invest in silver as the historical gold: silver ratio indicates that the precious metal is usually much more expensive.