Terms

Gold to Silver Ratio

Nick Name
gold-to-silver-ratio
The Gold to Silver Ratio tracks the number of silver ounces one can buy for the price of once gold ounce.

  • The ratio tends to rise before a major rally in gold and gold stocks
    • Example:  Gold rose 85% after the ratio his 80 in 2004 to 2006
  • The ratio tends to fall as gold and gold stocks are in bull markets
  • Many believe it provides reliable market guidance for precious metals
    • When the ratio climbs above 80, Silver tends to be a Buy

More Gold-Silver-Ratio Facts

  • Estimated that natural ratio of elements is 17.5 in Earth's Crust
  • ~15:1 has been used by many countries when on the gold/silver standard (Romans, US, France, etc). 

Times of Extreme Readings:

  • 1979 (Low)
  • 1991 (High) - All Time high at height of US recession 
  • 2011 (Low)
  • 2018 (High)