Silver to Gold Ratio - All Time
|Alltime Change||-0.04338 (-79.40%)|
Silver : Gold Ratio
The silver: gold ratio describes the amount of gold needed to buy an ounce of silver. Both precious metals are influenced by some of the same factors. Their respective values tend to rise during periods of economic instability, and fall when confidence in banking is higher. However, as we can see from the huge fluctuations in the ratio, their prices rise and fall at different rates. Silver's volatility plays an important part in this, as we can see from the example of the years succeeding 2011, when both metals peaked.
While the price of both silver and gold have dropped significantly since then, silver has fallen much further. This has caused the ratio to plummet as the gap between the two metals' values has widened. While silver was around 30 times cheaper than gold in mid 2011, a gold bar is now worth almost 80 times more than the same size bar of silver.
Historical ratio charts are useful tools that allow you to compare a metals current value relative to other metals against previous ratios. This enables an investor to determine the value of a potential investment. For example, the current silver: gold ratio shows the metal's value relative to gold to be lower than it has usually been in the past, and may imply that silver is currently undervalued.