The gold-silver ratio
A 5,000-year signal, and how modern investors actually use it.
The gold-silver ratio is simply the price of one ounce of gold divided by the price of one ounce of silver. Historically it has oscillated between roughly 30 and 100.
What the ratio tells you
A high ratio (silver cheap relative to gold) has historically preceded silver outperformance. A low ratio (silver expensive) has preceded silver underperformance and gold catch-up.
Why it works — imperfectly
Silver is both a monetary and industrial metal. In risk-off conditions it trades like gold; in expansions it trades like copper. The ratio captures that split personality.
Using it in a portfolio
Some investors rebalance between gold and silver when the ratio hits extremes. It is a tactical overlay, not a core strategy — and silver's volatility is roughly double gold's, so size accordingly.
Editorial disclaimer: DeepGold Academy content is educational and informational. Nothing on this page is investment advice.