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Hard Assets

Gold/Silver Ratio

Definition

The number of ounces of silver required to purchase one ounce of gold at current spot prices. The long-run historical average is approximately 55–65x. Extreme readings above 90x have historically—in 1991, 2003, 2009, and 2020—preceded significant silver outperformance as the ratio mean-reverts. Industrial silver demand growth (solar panels, EVs) creates an additional structural tailwind.

Live Intelligence Answer
Current Reading

65.0x

Normal
As of June 19, 2026Elevated Staleness

Macro Implication

Ratio is within the standard 60-80x range typical of modern fiat regimes.

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Formula / Calculation

G/S Ratio = Gold Spot Price / Silver Spot Price


Why It Matters

When the Gold/Silver ratio rises above 90x, silver historically becomes deeply undervalued relative to its monetary and industrial uses. Macro hedge funds monitor this ratio as a sentiment and positioning indicator — extreme fear-driven gold buying without silver participation is often followed by sharp silver rallies.

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Related Concepts

M2/Gold Ratio
A macro valuation metric comparing total global M2 money supply to the market capitalisation of all above-ground gold (estimated ~212,582 tonnes × spot price). The ratio measures how much fiat currency has been created relative to the finite stock of hard money in existence. When M2 expands faster than gold's market cap — through QE, fiscal monetisation, or credit creation — the ratio rises, signalling fiat debasement without corresponding hard asset appreciation. When gold outpaces M2 growth, the ratio falls, marking a re-rating phase where gold recovers its monetary coverage. Historically, ratio extremes in either direction have been followed by multi-year mean-reversion, making it one of the most reliable long-horizon gold valuation frameworks available to macro allocators.
Debt/Gold Z-Score
A proprietary ratio comparing total US Federal Debt to the dollar value of US officially-reported gold reserves at current spot prices, normalised as a Z-score against a 25-year rolling window. It measures how many "gold equivalents" the US government would need to redeem its entire debt — a thought experiment derived from the classical gold standard era.
Gold/Oil Ratio
A valuation metric measuring the price of one ounce of gold in terms of barrels of West Texas Intermediate (WTI) crude oil. Historically, the ratio averages around 16:1. A high ratio (above 25:1) suggests that oil is cheap relative to gold (often during recessions), while a low ratio (below 12:1) suggests energy is expensive or gold is undervalued relative to real-world energy costs.
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