The gold to silver ratio is a measure of comparison between gold and silver prices used to assess the value of one precious metal over the other. This ratio is determined by measuring data points for historical and current gold prices by the same data points for silver. It’s used to judge if, at any time, physical gold coins or bars are undervalued or overvalued compared to physical silver coins and bars.
This information helps traders determine whether to invest heavily in silver or gold at times when the other is overvalued. If the gold to silver ratio is high, the purchasing power and price of gold is high compared to that of silver. If the gold to silver ratio is low, the purchasing power and price of silver is high compared to that of gold.
If you’re interested in investing in gold, silver, or platinum coins or bars, our precious metal experts at California Numismatic Investments can help. We track current market prices for gold, silver, and platinum, and also offer silver, platinum, and gold coins for sale at great prices. For more information, call us today at (800) 225-7531.