How much silver does it take to buy 1 ounce of gold?

Good question. First, a simple definition: Basically, the gold-to-silver ratio is the amount of silver it takes to purchase one ounce of gold. At the time this was written, the gold-to-silver ratio stood at approximately 50 to 1. That means, at the current price, it would take 50ounces of silver to buy 1ounce of gold.

What is the gold/silver ratio?

A narrow ratio indicates that silver’s relative value is up and a wide ratio indicates that gold’s relative value is up. This ratio is an indicator that can be used to determine the right and wrong times to buy or sell gold and silver. What are the Benefits of the Gold/Silver Ratio?

What does the gold-to-silver ratio say about your investment portfolio?

Investors who trade gold bullion, silver bullion and other precious metals scrutinize the gold-to-silver ratio as a signal for the right time to buy or sell a particular metal. When the ratio is high, the general consensus is that silver is favored. This is because, relative to the ratio, silver is somewhat cheap.

What happens if the gold-to-silver ratio drops?

Likewise, if the ratio were to drop to its long-term average, silver prices would rise to about $61 per ounce. The gold-to-silver ratio is indeed one of several valuable tools used to determine the optimum time to buy gold or silver bullion.