What is the gold/silver ratio

The gold/silver ratio measures the relative strength of gold versus silver prices. It shows how many ounces of silver it takes to purchase one ounce of gold.

To get this number, you divide the current gold price by the current silver price.

When you have done this you now have the gold/silver ratio. It is a simple way to see which of the two metals is gaining value relative to the other.

 

The meaning of the ratio

Whenever the gold/silver ratio rises, it means that gold has become more expensive compared to silver. The gold/silver ratio is at a twenty-year high after breaking out of the 94 level.

Gold

 

The ratio hits a 20-year high

fxsoriginal

Looking at the 20-year ratio you can see how much more expensive gold has become compared to silver. The Fed cut interest rates by 50bps yesterday, so the weak dollar should only cause prices to rise further. If you missed gold, silver is still hanging around the station.

XAGUSD

 


 

Learn more about HYCM

High Risk Investment Warning: Contracts for Difference (‘CFDs’) are complex financial products that are traded on margin. Trading CFDs carries a high degree of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent expert advice if necessary and speculate only with funds that you can afford to lose. Please think carefully whether such trading suits you, taking into consideration all the relevant circumstances as well as your personal resources. We do not recommend clients posting their entire account balance to meet margin requirements. Clients can minimise their level of exposure by requesting a change in leverage limit. For more information please refer to HYCM’s Risk Disclosure.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD holds onto highs despite souring mood

EUR/USD is trading above 1.22 but off the highs. US Durable Goods Orders jumped by 3.4% in January, better than expected, and jobless claims surprised with a fall to 730K. Q4 GDP upgraded to 4.1%, as expected. The dollar is down despite falling stocks and rising US yields.

EUR/USD News

XAU/USD drops further to $1770 ahead of critical support

Gold dropped further during the American session and bottomed at $1769, the lowest level since last Friday. The metal erased weekly gains and is back below $1780 as US yields keep rising.

Gold news

S&P 500: Day Ahead Outlook Inflation fears linger as doves hit turbulence

US equity markets look for direction on Thursday with mixed signals leading to steady and slightly lower trade. Inflation concerns haven't gone away as the US 10 year hits another year high at nearly 1.5%.

Read more

Crypto bull run on track amid surge in US inflation expectations

The crypto bull run has taken a breather after the gruesome drop in value at the beginning of this week. Bitcoin led the freefall, dropping from $58,000 to $45,000. Generally, all cryptocurrencies retraced and are now holding above key support levels to prepare for another upswing to new yearly highs.

Read more

US Dollar Index remains depressed below 90.00

The greenback manages to bounce off weekly lows near 89.70, although it keeps navigating a sea of red when gauged by the US Dollar Index (DXY).

US Dollar Index News

Forex Majors

Cryptocurrencies

Signatures