Gold-Silver Ratio: Its History, 2025 Predictions, and How to Use It for Your Investments

The gold-silver ratio (GSR) is a valuable tool for investors seeking to time their entry into precious metals. As of June 2025, the GSR is approximately 92, reflecting silver’s recent surge to a 13-year high and gold’s modest pullback from record levels earlier this spring.

A high GSR (like today’s) typically suggests silver is undervalued relative to gold, signaling a potential buying opportunity for silver. A lower ratio could indicate gold is the better value.

Historically, the GSR has spiked during periods of economic uncertainty, such as the COVID-19 pandemic. But with silver now gaining momentum, many investors are reassessing their strategies to take advantage of the narrowing gap between gold and silver prices.

Table of Contents

1. What is the gold-silver ratio?
2. Historical perspective
3. Predictions for 2025
4. Investor guide: How to use the gold-silver ratio
5. Where to invest in gold and silver

What is the gold-silver ratio?

The gold-silver ratio measures how many ounces of silver are equivalent in value to one ounce of gold. It’s calculated by dividing the current price of gold by the current price of silver.

A higher ratio suggests that silver is undervalued compared to gold, and a lower ratio indicates the opposite.

Historical perspective of the gold-silver ratio

The GSR has fluctuated significantly over time:

• Ancient times: In ancient Egypt, the ratio was set at 2.5:1.
• 1792: The U.S. Coinage Act established a ratio of 15:1.
• 20th Century: The ratio varied, reaching 18.4 at the end of World War I and 99.8 at the start of World War II.
• 2020: During the COVID-19 pandemic, the ratio peaked at 123.3.
• June 2025: The ratio has decreased to around 92, reflecting silver’s recent surge.

Source: VC Elements

Gold-silver ratio predictions for 2025

Silver recently reached a 13-year high, trading above $36 per ounce, driven by strong industrial demand and a weakening U.S. dollar. Analysts suggest that silver may continue to outperform gold, potentially lowering the GSR further.

The Silver Institute projects a significant supply deficit for silver in 2025, with industrial fabrication expected to grow by 3%, particularly in renewable energy, automotive, and consumer electronics sectors.

Advertisement

Check Its Inventory

(866) 525-9625

$3+ billion in gold, silver, and platinum sold

• Discuss your options with a representative
• 7-day satisfaction guarantee
• Secure, fully-insured shipping

How should precious metals investors use the gold-silver ratio?

Investors can leverage the GSR to inform their trading strategies:

• High GSR (e.g., above 80): Consider buying silver, as it may be undervalued relative to gold.

• Low GSR (e.g., below 50): Consider buying gold, as it may be undervalued relative to silver.

A common approach is the 80/50 rule, where investors buy silver when the ratio exceeds 80 and switch to gold when it drops below 50. This strategy aims to capitalize on the relative value shifts between the two metals.

It’s important to note that while the GSR can be a useful indicator, it should not be the sole factor in investment decisions. Consider market trends, economic indicators, and your individual financial goals.

The GSR can provide valuable insight into the potential performance of gold and silver, helping investors gauge economic stability versus uncertainty and its impact on their investments.
If you’re managing your own portfolios, monitoring the GSR can signal strategic opportunities to buy or sell, making it a useful tool for timing precious metal trades.

Where to invest in gold and silver

If you are ready to invest in gold and silver, you have several options:

• Precious metals IRA: These IRS-regulated retirement accounts come with tax benefits, but you must follow strict government rules.
• Physical metals: Buying and holding precious metals outside an IRA gives investors more flexibility although it also means foregoing tax benefits.
• Gold and silver stocks: For those who don’t want to own and store physical metals, gold and silver stocks are an alternative investment option.

If you decide to purchase physical gold—either within or outside an IRA—the dealer you select can make the process easier. For instance, many gold IRA companies clearly identify eligible products. Plus, dealers may have useful charts to help you track spot prices, the gold-silver ratio, and more.

To get started, check out the following companies, which our team has picked as among the best gold dealer companies.

By monitoring the gold-silver ratio and understanding market dynamics, investors can make strategic decisions to optimize their precious metals portfolios in 2025 and beyond.