Professional Documents
Culture Documents
Goldsilverratio 130425101958 Phpapp01 PDF
Goldsilverratio 130425101958 Phpapp01 PDF
Goldsilverratio 130425101958 Phpapp01 PDF
ratio
View our comprehensive presentation on one of the most followed
ratios in the precious metals markets.
What is the gold silver ratio?
The gold silver ratio is a tool for
measuring the value of one
precious metals relative to
another.
In the last 40 years the ratio has averaged over 52:1, whilst
modern day ratios peaked in the early 1990s at over 100:1.
The lowest ratio, post 2000, was just over 30:1, when silver
surged to $45/ounce in April 2011. Large moves in the gold silver
ratio are normally driven by rapid price moves in more volatile
silver bullion.
Gold silver ratio plotted over time
High gold silver ratios – what do
they mean?
When the gold silver ratio hits highs of towards a 100:1 ratio, this
indicator is telling us that the markets are risk averse, that we may
be in recession, and that investors perceive danger.
During these times capital flows towards gold bullion are relatively
larger as safe havens shine, and investors flee more speculative
assets like silver bars.
During the recession of the early 1990s, the gold silver ratio briefly
exceeded 100:1, confirming the market’s mood of the time.
Low gold silver ratios – what do they
mean?
When the gold silver ratio sits at low levels in the 30s and 40s, this
silver investment indicator is telling us that the markets have an
appetite for risk, that stock markets are rising and maybe peaking,
and that investors are willing to bet on economic prosperity.
You might be best served to enjoy using the gold silver ratio as an
interesting footnote to your investing, comparing long term levels
of gold and silver prices and helping you understand how the two
precious metals’ prices are moving in relation to each other.