Gold vs Silver
The gold/silver ratio (the number of ounces of silver needed to buy one ounce of gold) is one of the oldest relative-value indicators in commodity markets. The long-term mean is roughly 60. Readings above 80 have historically signalled silver is cheap relative to gold; readings below 50 have signalled gold is cheap relative to silver.
Gold vs Silver chart
About Gold vs Silver
What is the gold-silver ratio?
The gold/silver ratio is the number of ounces of silver required to buy one ounce of gold. The long-term mean since 1900 is roughly 60. The ratio hit an all-time high of ~125 in March 2020 and a recent low of ~30 in 2011.
Is silver cheaper than gold right now?
If the gold/silver ratio is above 80, silver is historically cheap relative to gold by long-term standards. The current ratio is shown in the price grid above.
Which has better investment returns, gold or silver?
Silver typically shows larger percentage moves in both directions. In bull markets, silver tends to outperform gold. In bear markets, silver typically falls more. Gold has lower volatility and is more commonly held by central banks as a reserve asset.