Instructions on the correlation between gold and silver prices
Investing in precious metals is always a good idea for those seeking to hedge against inflation and diversify their portfolios. In 2025, gold has been a shining star, with its price skyrocketing as investors flocked to the metal as a safe haven. Silver, on the other hand, although more volatile, has also seen impressive gains.
With the value of silver compared to gold, also known as the gold-silver ratio, being an important metric to consider, let's take a closer look at it. At its core, the gold-silver ratio tells us how many ounces of silver are needed to buy one ounce of gold, and it's calculated by dividing the current market price of gold by that of silver.
As of this writing, gold is priced at £2,342.66 per ounce, while silver clocks in at £25.53 per ounce, making the gold-silver ratio 92:1, according to UK bullion dealer Chards. This means that gold is currently 92 times more expensive than silver.
A high ratio like this may indicate that silver is undervalued, making it an appealing investment. By comparing the current ratio to its average in recent years, investors may be able to gauge if one metal looks too expensive or the other too cheap.
The gold-silver ratio has a long history, dating back to ancient Roman times, and its evolution is closely tied to changes in economic conditions, market dynamics, and geopolitical events. In the past, it was even used by governments and empires to control currency and coinage.
During the 18th century, the U.S. government's Coinage Act of 1792 fixed the gold-silver ratio at 15:1, making gold more valuable than silver. However, in recent decades, the ratio has varied significantly, reaching highs of nearly 100:1 during the 1930s and peaking at over 125:1 in April 2020 during the pandemic.
Investors should keep an eye on the gold-silver ratio as it can provide valuable insights into the relative values and market dynamics of these two precious metals. By understanding the trends and factors influencing the ratio, investors may be better prepared to make strategic investment decisions that meet their needs.
Stay informed with the latest financial news and expert analysis by subscribing to our website magazine. Sign up today for 6 free issues and get a water bottle, then enjoy 60% off after your trial. Be sure to check out our other content, such as "Is now a good time to invest in gold?" and "The mystery of America's gold and why an audit matters." Happy investing!
[Fun Fact: The gold-silver ratio reached an all-time high of 126.5:1 in March 2020 during the pandemic. Grab your popcorn and dig deeper with Track all markets on TradingView!]
The gold-silver ratio, a key metric in precious metal finance, indicates the value difference between gold and silver, currently standing at 92:1 in favor of gold. This high ratio might suggest that silver is currently undervalued, potentially making it an attractive investment.
Investors seeking to gain a deeper understanding of market dynamics should closely monitor the gold-silver ratio, taking into account its historical evolution, economic conditions, and recent trends, in order to make strategic decisions when investing in gold or silver.
