It takes 50.7 ounces of silver to buy 1 ounce of gold
The gold-silver ratio represents the number of ounces of silver required to purchase one ounce of gold. It's calculated by dividing the current gold price by the current silver price.
Investors use this ratio to determine the relative value of silver compared to gold. When the ratio is high, silver is considered undervalued relative to gold. When it's low, gold may be the better value.
~15:1 ratio for thousands of years
Throughout most of history, the ratio remained relatively stable around 15:1, reflecting the natural occurrence of silver being about 15 times more abundant than gold in the Earth's crust.
Fixed at 15:1 by law
The US government officially set the ratio at 15:1, later adjusted to 16:1 in 1834. This fixed ratio was maintained until the US abandoned bimetallism.
~47:1 average ratio
After leaving the gold standard, the ratio became more volatile, averaging around 47:1 during the 20th century with significant swings in both directions.
60:1 to 120:1 range
In recent decades, the ratio has traded between 60:1 and 120:1, reaching historic highs during economic uncertainty. Many analysts consider ratios above 80:1 as favorable for silver investment.
Silver may be undervalued. Consider accumulating silver or trading gold for silver to increase total ounces.
Gold may be undervalued relative to silver. Consider trading silver for gold or focusing gold purchases.
Whether you prefer gold or silver, we offer competitive prices on both metals