Gold
$1,782.00
+8.00
Silver
$18.18
-0.03
Platinum
$821.00
-10.00
Palladium
$1,916.00
-14.00
800-444-8317
800-444-8317
Explore Monex

The Gold/Silver Price Ratio

There is no doubt that gold and silver prices have been sensationally volatile in terms of paper currencies, especially as you compare their values over a long period. Just fifty years ago, thirty-five U. S. dollars were exchanged for one troy ounce of gold. These days, you need somewhere about 1,600 to 1,800 dollars for an ounce. In other words, a dollar buys just 2% of the gold it once did five decades ago. 

Silver, like gold, is a universally accepted tangible precious commodity and store of wealth. It’s value has tracked gold's value, for the most part, and not the value of a paper currency. Five decades ago, 1.8 U. S. dollars were exchanged for one troy ounce of sliver and now you need about 15-20 dollars for an ounce.
One can point to a longstanding value of gold as being about 15 times that of silver since ancient times, but that is, shall we say, ancient history. In recent history, gold has been valued at an average of about 60 times silver, where silver outperforms gold in times of metals-favored trends. In 2011, in the bullish market after the financial crisis, gold's comparative value fell to below 35 times silver. In other words, silver outperformed gold at that time.

In unfavored bullion market trends, silver has been generally neglected and has become relatively cheap compared to gold. The market statistical term used to view silver in terms of gold is the gold/silver ratio. The higher the ratio the more expensive gold looks, and the more attractive silver looks. Since 2011, silver has become relatively undervalued in terms of gold.

Gold and Silver Ratio

Of course, past history

Is not a predictor of future events. However, monetary economic theory advises that if a government creates additional trillions of dollars out of thin air as stimulus, it is entirely unlikely that a dollar would buy the same amount of a precious commodity like gold.

For investors that believe paper currencies will not increase in their purchasing power of gold, and also think that market statistics like the gold/silver ratio may tend to revert to their mean, one can calculate a suggested value for silver based on a price of gold.

For example, a gold level of $1,700 and a gold/silver ratio of 80 to 60 would suggest silver being valued at $28 to $21 per ounce. And of course, a high gold/silver ratio of 120 to 80 suggests $14 to $21.

Gold / Silver Ratio Calculator

Enter A 
Gold Bullion Price

Your Silver Bullion
Value Is
$25.46
USD
Select a Ratio
Submit

Why Silver Bullion Depository Storage

Gold bullion and pure gold coins have an impressive advantage of being very compact based on their tangible value. Therefore, gold is very portable in sizable amounts. Silver, on the other hand, is relatively bulky. One thousand-ounce bars weigh seventy pounds, rendering it not easy to lift and move. This might provide anti-theft assurance, but sizable investments are cumbersome using home delivery. This is where an Atlas Depository Delivery account may be of interest. See About Depository Storage Link to learn how this account works, and consider how it might fit with your investment portfolio.

See What Investors are Saying About Monex

Thank You!
Want your kit sooner?
Faster delivery is available by phone.
800-444-8317
Get Your Free Report

A New Decade for
Precious Metals Investing

  • All form fields are required

  • Privacy Policy
  • This field is for validation purposes and should be left unchanged.
Download Your Report