For experienced investors, the gold to silver ratio is one of the many indicators used to time precious metal purchases and liquidation. At its most basic, the gold to silver ratio is the amount of silver it takes to purchase one ounce of gold. For example, if the gold to silver ratio is 50 to 1, that means at the current price it would take 50 ounces of silver to buy one ounce of gold. Advocates believe that when the ratio is at the higher end of its range, the market is silver friendly; when the ratio is on the lower end, the market is gold friendly. However, this ratio is not a fully accurate predictive model but rather a measurement of current market trends.
If you’re looking to take control of your precious metal investments, contact California Numismatic Investments. Our dealers can provide you with expert analysis to help you understand the factors that influence the value of your precious metal investments and take advantage of market fluctuations to maximize your returns. Call us toll-free at (888) 880-7101 to speak with one of our gold and silver experts.