Jumped in on a little silver EFT ETPMAG after looking at the gold- silver ratio discrepancy which is getter wider and wider.
The price relationship between gold and silver is often tracked using both direct price charts and the gold-silver ratio, which measures how many ounces of silver are equivalent in value to one ounce of gold. This relationship is fundamental for investors and analysts seeking to understand trends and relative value in the precious metals market.
Historical Correlation:Gold and silver prices have generally moved in the same direction over long periods, responding to similar macroeconomic factors such as inflation, currency fluctuations, and geopolitical uncertainty. However, silver is typically more volatile than gold, leading to sharper price swings23.
Gold-Silver Ratio:This ratio is a widely used metric to visualize the link between gold and silver prices. Over the past five years, the ratio has fluctuated significantly, with a five-year high of 115.12 and a low of 62.82. As of the most recent data, the ratio sits around 102, indicating that gold is currently much more expensive relative to silver than historical averages24.
Recent Performance:In 2025, both metals have experienced notable gains. For example, silver has increased by over 13% since the start of the year, often moving in tandem with gold during periods of economic uncertainty and US dollar weakness59.This parallel movement underscores their safe-haven status.
Investment Implications:When the gold-silver ratio is high, silver is considered undervalued relative to gold, which some investors interpret as a buying opportunity for silver. Conversely, a lower ratio suggests gold is relatively cheaper2.
Historical graph is worth a look as well perhaps.
Gold of course is the big thing at present.
Have a great day all.
