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Gold vs. Silver

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The current [gold/silver] ratio is. . .at midpoint of high/low points over the last 10 years

While the price of gold rising to records has gotten most of the headlines some traders are saying that investors should look to silver, which they say is a good under-the-radar play on the investor flight from fiat currencies.

The following chart shows the historical ratio between the price of gold and silver for 2000–2010. When the line is rising, gold is outperforming silver and vice versa.

Over the last decade, the ratio bottomed out at around 46 and peaked out at around 82 in late 2008. The average ratio over the entire period has been 61.6.

Interestingly, the current ratio of 63.3 is only slightly above average and right at the midpoint of the high and low points of the last 10 years. So even though silver hasn't been getting the headlines, the historical ratio between its price and gold is pretty much right in line with the historical average.

Ratio of gold to silver price 2000 - 2010


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