Gold/Silver Ratio (GSR)
The Gold/Silver Ratio measures how many ounces of silver it takes to buy one ounce of gold. It is a classic indicator used by precious metals investors to determine which metal is historically overvalued or undervalued relative to the other.
Ratio Calculator
Current Ratio
0.00
oz silver / oz gold
Historical Signal:
Neutral
How to Trade the Ratio
The modern historical average for the Gold/Silver ratio (since the end of the Bretton Woods system) sits roughly between 60 and 65.
| Ratio Level | Market Condition | Typical Strategy |
|---|---|---|
| > 85 | Silver historically cheap | Swap Gold for Silver |
| 60 - 80 | Normal bounds | Hold current allocation |
| < 50 | Silver historically expensive | Swap Silver for Gold |
Caveats
While mean-reversion strategies rely on the ratio returning to its historical average, structural shifts in industrial demand (e.g., silver's use in solar panels and electronics) could permanently alter the "normal" range. Furthermore, extreme highs (like the spike over 120 in March 2020) can persist longer than expected during liquidity panics.