Gold Silver Ratio

The Gold-Silver Ratio (GSR) is calculated by dividing the price of gold by the price of silver. It measures how many silver ounces you can buy with one ounce of gold. The gold vs silver ratio is a very popular tool to compare the performance between gold vs. silver. When the ratio is moving higher, gold prices are stronger than silver prices. When the ratio is moving down, silver is outperforming gold. Expert Geologists have proven that there is 17 times the amount of silver on the earth as there is gold. This gives many investors reason to believe that a gold-silver ratio of 17 is the equilibrium between the two precious metals, and theoretically the GSR will gravitate towards this number. This puts silver prices at $88.23/oz if gold stays at $1500/oz. In this century, since the Federal Reserve was created, there has been three occasions when the gold-silver ratio has been below 17 – 1919, 1968, and 1980. The gold-silver ratio is just one factors that you have to look at. Below is gold silver ratio graph that compares the two metals back to the 1700’s.