The gold silver ratio measures how many ounces of silver it takes to purchase one ounce of gold. For example, if gold is $2,000/oz and silver is $25/oz, the ratio is 80 (2000 ÷ 25 = 80).

This ratio has been tracked for centuries and is used by investors to determine the relative value of gold versus silver at any given time.

High ratios (above 80) historically indicate silver is undervalued relative to gold. Many investors use ratios above 80-90 as a signal to swap gold for silver.

The ratio reached 125 during the March 2020 COVID crash — an extreme buying opportunity for silver that saw the ratio drop to 65 within months.

Low ratios (below 50) suggest gold is undervalued relative to silver. Investors often swap silver for gold when the ratio drops below 50-60.

The ratio reached 31 in April 2011 during silver's historic run — an excellent time to have swapped silver for gold.

Ratio trading is a strategy where you swap between gold and silver based on the ratio:

• High ratio (80+): Sell gold, buy silver
• Low ratio (50-): Sell silver, buy gold
• Goal: Accumulate more total ounces over time

Use our calculator above to simulate this strategy with your own thresholds.

Historical averages vary by time period:

• Ancient times: ~15:1 (natural occurrence ratio)
• 20th century: ~47:1
• Since 1971: ~60:1
• Last 10 years: ~75:1
• Last 5 years: ~82:1