“The Gold/Silver Ratio Explained”
January 1, 2021
“What is the Gold/Silver Ratio?
The gold/silver ratio is an indicator that tells you the multiple of gold’s price over that of silver. For example: in May 1920, the price of gold per ounce was $253.15 and the price of silver was at $12.64. The gold and silver ratio was at 20:1 or 20-to-1. This means that 20 ounces of silver was equal to one ounce of gold.
How Can You Use the Gold-to-Silver Ratio?
What makes this ratio valuable is how it might compare to the historical average ratio. In this way, you can speculate whether gold is trading at too high a price, or if silver is trading at too low a price, and vice versa.
The main purpose of the gold and silver ratio is to determine the optimal time to buy (or sell) gold and silver.
But on a more advanced level, you can use this ratio to accumulate more of each metal by cyclically converting one to the other, and we’ll show you how to do this…
Currently, the gold/silver ratio is at 84:1, with silver having just recovered from a 3-year decline, one that tested a 21-year low…”
https://gsiexchange.com/the-gold-silver-ratio-explained/
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