Gold to Silver Ratio - What is it and How Can You Trade it?

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For many gold and silver traders the gold-to-silver ratio is one of the most important indicators used to identify the correct points at which to buy or sell.
Gold trading and silver trading have gained in populariy over the recent decades but it seems that this particular indicator hasn't become as popular among the mass trading community.
Despite this, we decided to take a look at the gold/silver ratio, as it does provide a glimpse into the gold and silver prices, which have been historically correlated.
Needless to say the gold to silver ratio hasn't always been correct in predicting the exact time to enter and exit trades. But we also don't believe there is a single indicator that can do that.
The gold price ratio to silver has however been a constant reminder of extremes in the market when one metal has shot ahead (or the other has lagged behind) in terms of its price. So we've included some of these levels in this video for those of you who plan to trade gold and trade silver in the coming weeks and months, just to have it handy and to check if it does still provide some additional context.
Give us a thumbs up if you liked we had the gold to silver ratio explained and make sure to subscribe to the capital.com channel for more gold and silver videos!
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[@trendingsoftware]

Tanks Dave, as usual a very well presented and informative video. I have nothing to add as you have described it and how to use it brilliantly.

[@Capitaltrading]

Cheers trendingsoftware!

[@suhasappalomate]

good Information sir

[@Capitaltrading]

Thanks Suhas!

[@xrick76tube]

I bought a 1 ounce gold bar in the Middle East in 2000 ish time frame for 90 Dollars

[@absolute___zero]

There is more deep meaning in this variable. Gold/Silver ratio is a credit contraction indicator. Or in other words : an indicator of deflation. You can track this on the chart, a spike in 2008, an uptrend in 2000. This means, if you see Gold/Silver ratio going higher, expect lower prices in commodities and viceversa. Currently it is doing a test of 80 level after the breakout.

[@Capitaltrading]

So deflation coming soon according to this? Do you agree with the widely assumed notion that gold (historically) outperforms silver at the start of the deflationary period and silver then rises more?

[@absolute___zero]

@@Capitaltrading exactly! , at the start gold outperforms silver, but not when deflation is running at full.

[@xxgoldmoney]

Hmm i thought i should buy silver now and trade it to gold once the ratio is 40:1 Is this wrong?

[@Capitaltrading]

@@xxgoldmoney It seems correct. IF you're sure the ratio is going down, that is.

[@xxgoldmoney]

Capital.com with banks (e.g. jp morgan) and countries (e.g. India) stocking up on silver, i have confidence it will go down. Plus silver has more industrial usecases than gold. The only way i could see it not going down is if the USD becomes backed by gold (and not silver), but i dont think we’ll ever see a gold standard again. If JP Morgan is buying like crazy, they must know something we don’t know. Hope i’m right, but either way i’m going 80% silver 20% gold for my PM holdings for now

[@bavistradingjournal4673]

First of all I'm big fan of your channel guys.. The way your explaining with the help of the chart is really awesome... I wanna know More about the platform(brokerage) which your using to place your positional orders... I'm from india . I haven't seen this type of charting tools...

[@Capitaltrading]

Hi Pavithran, thanks for the positive comment. This is the capital.com platform and it's available for web and both iOS and Android phones. Clients from India are also welcome.

[@eddyson4270]

The time will come for the gramasi ratio of gold and silver to touch the ratio of 1: 7 The comparisons that I use around us from 2 publishers who of each have guidelines for determining zakat according to hadith and fiqh and their knowledge in calculating the content and weight of each, more or less what must be zakat for gold and silver is 20 dinars (gold) and 200 dirhams (silver) but I just take the ratio of grams, not the amount of dinars and dirhams which is 20: 200 / 1:10, nor is it a price ratio based on dollars. Approximately the calculation in grams is as follows IMN: 1 dinar = 4.44 Gr Au ​​X 20 = 88.8 Gr Au 1 dirham = 3.11 Gr Ag X 200 = 622 Gr Ag 622: 88,8 = 7 The gramation ratio is 1: 7 Wakala: 1 dinar = 4.25 Gr Au ​​X 20 = 85 Gr Au 1 dirham = 2.975 Gr Ag X 200 = 595 Gr Ag 595: 85 = 7 The gramation ratio is 1: 7 So the ratio of weight in grams is approximately 1: 7 That's not the level of purity either, you know ... For comparison of zakat, it is indeed 1:10 But for the ratio of weight in grams of approximately 1: 7 (more or less) this is already written in the religious books that I have studied Sorry, this is just my opinion regarding the weight ratio of gold & silver that must be spent on zakat, for the price it may still fluctuate while it has not arrived at the time when all will have no value and will have trouble in human life, except holding the yellow (gold) and white (silver) I calculated from the weight side the amount of zakat that must be paid for gold and silver It may also be the equivalent of the amount of gold & silver that was created and sent down with the prophet Adam to earth. perhaps that should also be the price-to-quantity ratio. Sorry this is just my personal opinion. Hopefully this is useful, we learn together friends😁😁

[@t-com1556]

thank you

[@Capitaltrading]

Thanks for watching and supporting us Dz TV!

[@stepstepbrother6605]

In early July with the ratio over 93, I bought 94 ASEs instead of buying a gold eagle. I will convert it into gold eagles as the ratio corrects. At 47 I'll trade 47 ASEs for my first of up to 7 AGEs. SGR - Trade # - silver ounces remaining 47 - 1 - 47 23 - 2 - 24 11 - 3 - 13 5 - 4 - 8 3 - 5 - 5 3 - 6 - 2 2 - 7 - 0 However I think the current ratio of 85 is going back over 90 in the short term. A ratio of under 40 to 1 is realistic once the banksters stop controlling the markets with futures contracts derived from infinite fiat resources, and our society begins to operate within a free market capitalism environment. Remember that the truly important gold and silver ratio is defined by the supreme law of the US republic at around 16 to 1. Please examine the thumbnail of my latest video to see why even 16 is too high of a ratio. Supply and demand baby.

[@stepstepbrother6605]

i.ytimg.com/vi/IXmthfT8Bo4/hqdefault.jpg

[@mann234]

76.16 now 7th Nov. 2020