The gold silver ratio is simply the price of an ounce of silver divided into the price of an ounce of gold. The resulting number shows how many ounces of silver it takes to buy an ounce of gold.
To calculate the gold to silver ratio on a given day, take the gold price and divide it by the silver price.
It can also be used as a way to determine when it is better to buy silver and when it is better to buy gold. A higher ratio means silver is undervalued compared to gold. Conversely a lower ratio means silver is overvalued compared to gold.
The all time high of the gold to silver ratio at 120 was achieved on 16th March 2020.
As a rule of thumb, and this may change over time, but basis historic data during the last 20 years, consider buying gold when the ratio gets below 50 and buy mostly silver when it's above 70. Buy a bit of both when the ratio is in the middle zone.
The current gold silver ratio at the close of trading on Friday stood at 80.40; At the moment, Silver is slightly undervalued.
Prior to year end, which precious metal are you likely to invest in?