Silver to Gold Ratio Calculator
Calculate the current silver-to-gold ratio and compare it to historical averages. Discover potential upside if the ratio normalizes.
Price Inputs
Current Silver-to-Gold Ratio
$2,650 gold / $31 silver
Historical Comparison
Long-term Average
Since 1900 (120+ years)
47:1
+82% vs current
20-Year Average
2004-2024
65:1
+32% vs current
Recent Average
2020-2026 range
~85:1
Near current level
Ratio Analysis
The current ratio of 85.5:1 is significantly above the long-term average, suggesting silver may be undervalued relative to gold.
If the Ratio Normalizes...
Silver would be worth
$53.00
Potential gain
+71%
Silver would be worth
$56.38
Potential gain
+82%
Silver would be worth
$88.33
Potential gain
+185%
* Projections assume gold price remains at $2,650. Actual returns depend on market conditions.
Key Ratio Facts
- All-time low: 14:1 (1980, Hunt Brothers squeeze)
- All-time high: 125:1 (March 2020, COVID panic)
- Natural occurrence in Earth's crust: ~17:1
- US Coinage Act of 1792: 15:1 (legal ratio)
Silver-to-Gold Ratio Historical Chart
1970-2026
Source: Historical data compiled from various sources. Data is approximate and for educational purposes only.
Want to Buy Silver Before the Ratio Normalizes?
If the silver-to-gold ratio returns to historical levels, silver could see significant upside. Learn how to add physical silver to your IRA with tax advantages.
Understanding the Silver-to-Gold Ratio
What Is the Silver-to-Gold Ratio?
The silver-to-gold ratio measures how many ounces of silver it takes to buy one ounce of gold. Simply divide the gold price by the silver price.
A ratio of 80:1 means you need 80 ounces of silver to equal the value of one ounce of gold. Historically, this ratio has averaged around 47:1 over the past century.
Historical Significance
Throughout history, governments set fixed ratios for silver-to-gold. The US Coinage Act of 1792 established a legal ratio of 15:1, reflecting silver's importance as money.
In nature, silver is approximately 17 times more abundant than gold in the Earth's crust, suggesting a “natural” ratio near this level.
Why the Ratio Matters for Investors
Many investors use the ratio to determine relative value between gold and silver. When the ratio is high (above 80), silver is considered undervalued relative to gold.
- High ratio: Consider buying silver over gold
- Low ratio: Consider buying gold over silver
- Mean reversion: Ratio tends to return to averages
Expert Opinions on “Fair Value”
Precious metals analysts have varying views on the “fair” silver-to-gold ratio:
- 47:1- 100-year historical average
- 17:1- Natural geological ratio
- 50-60:1- Most analyst consensus range
- 16:1- Historical monetary ratio
Frequently Asked Questions
Why is the ratio so high right now?
The ratio has been elevated since 2018 due to several factors: silver's industrial demand volatility, gold's safe-haven premium during economic uncertainty, and reduced silver investment demand compared to gold ETFs.
What causes the ratio to change?
The ratio fluctuates based on: supply and demand for each metal, industrial usage (silver has more industrial applications), investment demand, currency movements, and overall economic conditions.
Should I invest based on the ratio alone?
The ratio is one tool among many for precious metals analysis. Consider your overall investment goals, risk tolerance, and portfolio diversification needs before making investment decisions based on the ratio.
How can I invest in silver through an IRA?
A Precious Metals IRA (or Silver IRA) allows you to hold physical silver coins and bars in a tax-advantaged retirement account. You can transfer existing IRA or 401(k) funds without triggering taxes.
Ready to Add Silver to Your Portfolio?
Augusta Precious Metals offers both gold and silver IRA options. Get a free consultation to learn about diversifying your retirement with precious metals.