Gold–Silver Ratio = Price of Gold ÷ Price of Silver
It tells you how many ounces of silver are needed to buy 1 ounce of gold.
Gold = $2,000/oz
Silver = $25/oz
👉 Gold–Silver Ratio = 80
Meaning:
80 ounces of silver = 1 ounce of gold
From a bullion expert’s lens, the GSR is not a random number.
It reflects:
Risk appetite
Economic stress
Monetary policy
Inflation expectations
Industrial demand cycle
Think of it as a thermometer of fear vs growth.
➡ ~60
This is the mean-reversion anchor.
Silver is extremely undervalued
Seen during:
1991 recession
2008 global financial crisis
March 2020 COVID crash
2023–24 tightening cycle
Market psychology:
Fear
Liquidity crunch
Investors rush to gold (safe haven)
Silver gets ignored (industrial metal tag)
👉 Historically, this phase = best long-term opportunity in silver
Silver is overheated
Seen during:
1980 silver mania
2011 QE-driven commodity boom
Market psychology:
High inflation fear
Easy money
Speculation
Strong industrial demand
👉 Historically, this phase = book profits in silver
As someone tracking bullion for decades, this is crucial:
| Gold | Silver |
|---|---|
| Monetary metal | Monetary + Industrial |
| Stable moves | Explosive moves |
| Wealth protection | Wealth + growth play |
So:
When bull markets start, silver lags
When bull markets mature, silver outperforms massively
That’s why GSR collapses rapidly in strong cycles.
High GSR (80+) → Accumulate Silver
Low GSR (40-) → Shift to Gold
Mid-range (55–65) → Hold both
This is called ratio trading, used by:
Central-bank-aligned funds
Commodity hedge funds
Long-term bullion allocators
We are in a world of:
De-dollarisation
Central banks buying gold
Rising geopolitical risk
Long-term inflation stickiness
Green energy → silver demand (solar, EVs)
👉 Gold leads the cycle
👉 Silver finishes the cycle
Historically, whenever:
Gold makes new highs
AND GSR is elevated
Silver eventually plays catch-up violently.
Gold–Silver Ratio tells you WHEN to prefer silver over gold, not IF.
High ratio = patience + accumulation
Low ratio = caution + profit booking