What Is the Gold to Silver Ratio?
The gold-to-silver ratio is calculated by dividing the current price of gold per ounce by the current price of silver per ounce. For example, if gold is $2,000/oz and silver is $25/oz, the ratio is 80:1 — meaning it takes 80 ounces of silver to buy one ounce of gold.
The ratio is a relative valuation tool, not an absolute one. It does not tell you whether gold or silver is expensive or cheap in dollar terms. Instead, it tells you how the two metals are priced relative to each other. A high ratio means silver is cheap relative to gold (or gold is expensive relative to silver), and a low ratio means the opposite.
Investors, traders, and analysts have tracked this ratio for centuries. It was used in ancient civilizations to set exchange rates between gold and silver coins, and it remains a key metric for precious metals investors today. You can track the ratio in real time on our interactive ratio chart.
Historical Gold-Silver Ratio
The gold-silver ratio has varied dramatically across different eras, reflecting changes in monetary systems, industrial demand, and market conditions.
- Ancient & classical periods – Many historical civilizations set an official gold-to-silver ratio. The Roman Empire used roughly 12:1, and various medieval European kingdoms maintained ratios between 10:1 and 15:1. The US Coinage Act of 1792 fixed the ratio at 15:1.
- 20th century average (~47:1) – During the 1900s, the ratio averaged approximately 47:1. It fluctuated significantly, ranging from lows near 15:1 during the 1980 precious metals mania to highs above 90:1 during periods of silver price weakness.
- 21st century average (~65:1) – Since 2000, the ratio has averaged approximately 65:1, reflecting silver's diminished monetary role and the growth of gold as a reserve asset. The ratio has spent most of this century between 50:1 and 85:1.
- Pandemic peak (~120:1, March 2020) – The ratio spiked to approximately 120:1 in March 2020 as gold held up during the initial pandemic crash while silver — more tied to industrial demand — fell sharply. This was one of the most extreme readings in modern history.
- Historical low (~15:1, January 1980) – During the Hunt brothers' attempt to corner the silver market, silver surged to nearly $50/oz and the ratio collapsed to roughly 15:1. This remains the lowest recorded ratio in modern financial history.
How the Ratio Is Used
The gold-silver ratio is used as a tool for relative value assessment. Here are common ways market participants interpret it:
- Relative valuation — The ratio indicates whether silver is historically cheap or expensive relative to gold. A high ratio (above the long-term average) means silver is priced at a wider-than-usual discount to gold, and vice versa.
- Market sentiment indicator — The ratio can reflect broader market conditions. During periods of financial stress, the ratio tends to spike as gold outperforms silver (which has industrial demand exposure). A falling ratio often reflects confidence in economic growth.
- Historical context — Comparing the current ratio to historical averages provides context for the current gold-silver price relationship. However, the ratio can remain at extreme levels for years.
- Important caveat — No single indicator provides a complete picture. Structural changes in demand (particularly industrial silver demand from solar and EVs) may permanently shift the long-term equilibrium. The ratio is one data point among many and should not be used as the basis for financial decisions. Consult a qualified advisor.
Interpreting the Current Ratio
The current gold-silver ratio gains meaning when compared to historical averages.
A ratio above the 21st century average of ~65:1 indicates silver is trading at a wider-than-usual discount to gold. Historically, the ratio has tended to contract during precious metals bull markets, though past patterns do not guarantee future behavior.
A ratio below ~65:1 indicates silver is trading at a narrower-than-usual discount to gold (or at a relative premium). This has historically occurred during periods of strong industrial demand or speculative enthusiasm for silver.
The ratio should always be interpreted alongside other factors: the direction of gold and silver prices, the macroeconomic environment, industrial demand trends, and supply-demand balances. The ratio is a descriptive metric — it shows where prices stand relative to history, but it does not predict future movements. This page is for informational purposes only and does not constitute financial advice.