Gold/Silver ratio, is a ratio of the gold price to the silver price. In other words, it measures how many ounces of silver it takes to buy an ounce of gold. For example, assuming the current gold price is 1280 US Dollars per ounce, and the silver price is 20 US Dollars per ounce, so the Gold/Silver ratio is equal to gold price / silver price, that is 64:1.
It's important to note that the gold-silver ratio is not a fixed value and can fluctuate over time. The ratio is influenced by a variety of factors, including the supply and demand for the two metals, the overall state of the economy, and the relative strength of different currencies. Additionally, the ratio may be affected by events such as wars, natural disasters, and government policies. This means that the ratio can change quite dramatically from day to day, so traders and investors need to be prepared for this.
Gold Price Per Ounce
1924.1 US Dollar
Bid Price: $1924.1
Ask Price: $1925.1
Day's Range: $1919.3 - $1925.6
Prices Updated: Sep 21, 2023 at 22:51 NY Time
Gold Silver Ratio Charts
London gold and silver fixing price in previous days
|Gold Ounce||Gold Kilo||Gold Gram||Silver Ounce||Silver Kilo||Silver Gram|
How to use the Gold/Silver ratio?
From 1976 to 1980, that period is a bull market of precious metals; the Gold/Silver ratio fell from 40:1 to 17:1. From 1990 to 1991, the precious metals trading are in a bear market, the ratio rose from 71:1 to 100:1. From 2003 to 2008, the silver price rose, the ratio dropped from 80:1 to 45:1.
The above data shows that the Gold/Silver ratio is not fixed. Investors can use the fluctuating ratio to estimate the relative value of silver, which confirms to buy gold or silver in an optimal time. When the ratio is rising, that means the price of gold increases, or the price of silver decreases; as the ratio is falling, it means the price of gold decreases, or the price of silver increase.
Typically, the price of silver drop faster than gold during a recession, and silver will rise faster than gold during a bull market in the metals. In short, the Gold/Silver ratio is larger during a bear market and smaller in a bull market.