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.

Feed news

Latest Forex Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD extends gains amid dollar weakness

EUR/USD has bounced above 1.2150 as the US dollar resumes its decline in the aftermath of Friday's weak job figures. Uncertainty about the ECB's policy somewhat weighs on the currency while the upbeat Sentix Investor Confidence supports it.

EUR/USD News

GBP/USD soars to 1.41 after UK elections, US Nonfarm Payrolls

GBP/USD has hit a new three-month high just above 1.41 after the SNP failed to win a majority in Scotland and as the UK is set to extend its reopening. The dollar is still suffering from Friday's weak jobs report.

GBP/USD News

XAU/USD consolidates around $1835 after NFP, awaits fresh impetus

Gold buyers defend $1,830 even as Friday’s run-up pauses for fresh push to the north. US NFP, Unemployment Rate backed Biden, Yellen and Fed to shrug off rate hike pressure.

Gold News

Dogecoin eyes consolidation after its recent pullback

Dogecoin price could undergo consolidation as it is stuck between two demand barriers. Transactional data shows underwater investors at $0.624 could hinder an upswing.

More Dogecoin News

S&P 500, Nasdaq Week Ahead: Fed to markets, we have your back never mind the jobs report!

Well after a fairly sluggish start to the week things certainly sprang to life on Friday as a brutal employment report was a catalyst for a strong rally! Go figure. Well, the logic is actually not as stupid as it first appears. Bears have been hibernating and face possible extinction.

Read more

Majors

Cryptocurrencies

Signatures