Gold-Silver Ratio in 2025: Market Prices and Historical Insights at $2,387 Gold & $28 Silver

J.B. Maverick brings over 17 years of active trading and commodity futures brokerage experience, coupled with more than a decade as a finance writer and book editor.

Investors keen on precious metals closely monitor the prices of gold and silver, but equally important is the gold-silver ratio—a key indicator revealing the value relationship between these two metals.

The gold-silver ratio reflects how many ounces of silver are needed to match the value of one ounce of gold. For example, on July 26, 2024, gold traded at $2,387 per ounce, while silver was priced at $28 per ounce, setting the ratio at approximately 85:1.

As the longest continuously tracked exchange rate in financial history, the gold-silver ratio remains a crucial tool for traders who speculate on the shifting prices of gold and silver and their relative values.

Key Takeaways

• The gold-silver ratio shows the price relationship between gold and silver by indicating how many ounces of silver equal one ounce of gold.
• Historically, governments fixed the ratio to stabilize currencies, but today it fluctuates with the market dynamics.
• While the ratio was stable over centuries, the 20th century introduced notable volatility due to major economic changes.
• Investors and traders use the ratio for hedging and profit opportunities in precious metals markets.

The Evolution of the Gold-Silver Ratio

For centuries, the gold-silver ratio remained relatively fixed, as governments regulated it to maintain monetary stability. The Roman Empire set it at 12:1, medieval Europe saw fluctuations like 9.4:1 in 1350, and the U.S. established a 15:1 ratio with the Coinage Act of 1792.

Market Shifts and Volatility

The 20th century brought dramatic changes: massive silver discoveries and government interventions caused increased fluctuations. President Roosevelt’s 1934 gold pricing at $35 per ounce pushed the ratio to a peak of 98:1 by 1939.

The Bretton Woods Agreement after World War II pegged currencies to gold, gradually lowering the ratio until the U.S. abandoned the gold standard in the 1970s, causing the ratio to rise sharply, reaching nearly 98:1 in 1991.

Throughout the 20th century, the average ratio was about 47:1, while the 21st century has seen it mostly range between 50:1 and 70:1, with a record high of 104.98:1 in 2020 and a low of 35:1 in 2011.

Trading and Investing Using the Gold-Silver Ratio

Many investors actively trade the gold-silver ratio by hedging positions—buying one metal while short-selling the other—to capitalize on anticipated ratio movements.

For instance, if the ratio is historically high and traders expect gold prices to fall relative to silver, they may buy silver and short gold. Success depends on the ratio moving as predicted, enabling profits regardless of overall price trends.

Fast Fact

The gold-silver ratio serves as a vital timing indicator for investors deciding when to buy or sell gold or silver.

How Is the Gold-Silver Ratio Calculated?

Simply divide the current price of one ounce of gold by the price of one ounce of silver. For example, with gold at $2,000 and silver at $30, the ratio is 66:1.

Record Highs in the Gold-Silver Ratio

The ratio peaked recently in April 2020 at over 125:1, triggered by gold’s surge far outpacing silver during the COVID-19 pandemic.

Long-Term Average Ratio

Since the 1970s, after the gold standard ended, the long-term average ratio hovers near 65:1, contrasting with historical fixed ratios closer to 15:1.

Conclusion

The gold-silver ratio remains an essential metric for understanding precious metals value relationships. Having been stable for centuries, it became volatile with modern economic shifts. Savvy investors leverage this ratio not just by trading the metals themselves, but also by speculating on their price relationship to optimize returns.

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