Gold-Silver Ratio Historical Data (1970-2026)
The gold-silver ratio measures how many ounces of silver it takes to purchase one ounce of gold. This ratio has been tracked for thousands of years and serves as a key indicator for precious metals investors. In ancient Rome, the ratio was fixed at 12:1, while in modern markets it has ranged from 15:1 to over 120:1.
Understanding the historical patterns of this ratio can help investors identify potential buying opportunities in either metal. Use our <a href="/finance/gold-silver-ratio-calculator/current" class="text-blue-600 hover:underline">current gold-silver ratio calculator</a> to see today's live ratio and how it compares to historical averages.
Key Insights
- The gold-silver ratio hit an all-time high of 124.3:1 during the March 2020 COVID crash, then reverted to 69.8:1 within five months as silver rallied 150%.
- The long-term average ratio (1970-2026) is approximately 62:1, suggesting the current level of 78.5:1 represents moderately undervalued silver.
- Silver outperforms gold during economic expansions and commodity rallies (2006, 2011, 2020 recovery) but underperforms during crises when investors flee to gold safety.
- Growing industrial demand from solar panels and EVs is creating a structural silver supply deficit that may push the ratio lower over the coming decade.
- The ratio trade strategy (swapping at extremes above 80:1 and below 50:1) has historically outperformed simple buy-and-hold by 15-30% over full cycles.
Gold-Silver Ratio by Decade (1970s-2020s)
Average, high, and low gold-silver ratios by decade, showing how the relationship between the two metals has evolved over time.
| Decade | Average Ratio | Decade High | Decade Low | Trend |
|---|---|---|---|---|
| 1970-1979 | 31.5:1 | 46.8:1 (1973) | 15.7:1 (1979) | Declining (silver surge) |
| 1980-1989 | 54.8:1 | 97.3:1 (1981) | 17.1:1 (1980) | Volatile, trending up |
| 1990-1999 | 68.2:1 | 81.4:1 (1991) | 46.7:1 (1998) | Elevated, stable |
| 2000-2009 | 60.4:1 | 80.2:1 (2008) | 43.6:1 (2006) | Declining with metals rally |
| 2010-2019 | 71.8:1 | 93.4:1 (2018) | 31.7:1 (2011) | Wide range, trending up |
| 2020-2026 | 79.6:1 | 124.3:1 (2020) | 62.8:1 (2024) | Elevated, post-COVID normalization |
Notable Gold-Silver Ratio Events
Key historical moments that caused significant moves in the gold-silver ratio, along with the market context.
| Year | Ratio | Event | Market Context |
|---|---|---|---|
| 1980 | 17.1:1 | Hunt Brothers silver squeeze | Silver hit $50/oz as Hunts tried to corner the market |
| 1991 | 100.0:1 | Silver multi-year low | Silver collapsed while gold held steady during recession |
| 1998 | 46.7:1 | Silver rally | Warren Buffett disclosed massive silver purchase |
| 2006 | 43.6:1 | Commodities supercycle | China-driven industrial demand boosted silver |
| 2008 | 80.2:1 | Financial crisis peak | Flight to gold safety; silver sold off as industrial metal |
| 2011 | 31.7:1 | Precious metals peak | Silver hit $49/oz; gold hit $1,920/oz |
| 2016 | 68.3:1 | Post-Brexit rally | Both metals rallied on uncertainty; silver outpaced gold |
| 2020 Mar | 124.3:1 | COVID-19 crash | Silver crashed more than gold during pandemic panic; highest ratio in recorded history |
| 2020 Aug | 69.8:1 | Silver recovery rally | Silver rallied from $12 to $29 in five months |
| 2024 | 62.8:1 | Industrial demand surge | Solar panel and EV demand boosted silver |
| 2026 Jan | 78.5:1 | Current level | Gold at $2,680; silver at $34.15 |
Gold vs Silver Annual Returns (2015-2025)
Year-by-year comparison of gold and silver annual returns, along with the year-end gold-silver ratio.
| Year | Gold Return | Silver Return | Year-End Ratio | Outperformer |
|---|---|---|---|---|
| 2015 | -10.4% | -11.7% | 75.7:1 | Gold (smaller loss) |
| 2016 | +8.5% | +15.8% | 71.6:1 | Silver |
| 2017 | +13.1% | +6.4% | 76.8:1 | Gold |
| 2018 | -1.6% | -8.5% | 82.3:1 | Gold (smaller loss) |
| 2019 | +18.3% | +15.3% | 85.5:1 | Gold |
| 2020 | +25.1% | +47.9% | 72.3:1 | Silver |
| 2021 | -3.6% | -11.7% | 77.4:1 | Gold (smaller loss) |
| 2022 | -0.3% | +6.1% | 75.8:1 | Silver |
| 2023 | +13.1% | -1.2% | 84.2:1 | Gold |
| 2024 | +27.2% | +21.4% | 68.4:1 | Gold |
| 2025 | +8.6% | +14.2% | 72.1:1 | Silver |
Understanding the Gold-Silver Ratio
The gold-silver ratio is one of the oldest continuously tracked financial metrics, dating back to ancient civilizations. At its simplest, it tells investors how many ounces of silver are needed to buy one ounce of gold. When the ratio is high (above 80:1), silver is considered relatively cheap compared to gold. When the ratio is low (below 50:1), gold is considered relatively cheap compared to silver.
Historically, the ratio has averaged around 60-65:1 over the past century. Extreme readings tend to revert toward this mean over time, making the ratio a useful tool for timing precious metals trades. For example, when the ratio spiked to 124.3:1 during the March 2020 COVID crash, silver subsequently rallied nearly 150% over the next five months as the ratio normalized.
Our gold-silver ratio calculator provides the current live ratio and historical context to help you evaluate whether gold or silver currently offers better relative value.
Trading Strategies Based on the Ratio
The most common ratio-based strategy is the "ratio trade," where investors swap between gold and silver based on extreme readings. When the ratio exceeds 80:1, investors sell gold and buy silver, expecting silver to outperform as the ratio normalizes. When the ratio drops below 50:1, they sell silver and buy gold. This approach has historically generated returns of 15-30% above simple buy-and-hold strategies over full market cycles.
A more conservative approach uses the ratio as a portfolio allocation tool. Investors maintain a fixed portfolio of precious metals but tilt toward the undervalued metal when the ratio reaches extremes. For example, at the current 78.5:1 ratio (January 2026), this strategy would suggest a moderate overweight to silver, as the ratio is above the long-term average but not yet at extreme levels.
It is critical to recognize that the ratio can remain at extreme levels for extended periods. The ratio stayed above 80:1 for most of 2018-2020 before finally reverting. Patience and a willingness to hold positions for 1-3 years are essential for ratio-based strategies to work.
Supply and Demand Factors Driving the Ratio
The gold-silver ratio is fundamentally driven by the differing demand profiles of the two metals. Gold is primarily a monetary and store-of-value asset, with approximately 50% of annual demand coming from jewelry, 25% from investment (bars, coins, ETFs), and 25% from central bank purchases. Industrial use accounts for less than 10% of gold demand.
Silver, by contrast, has a much larger industrial component. Approximately 55% of silver demand comes from industrial applications, including solar panels, electronics, medical devices, and increasingly electric vehicles. This means silver is more sensitive to economic cycles -- it falls harder during recessions (when industrial demand drops) and rallies harder during expansions. The growing demand from the solar industry, which uses silver in photovoltaic cells, has been a significant tailwind since 2023.
On the supply side, silver mining output has been relatively flat while industrial demand has grown, creating a structural deficit that many analysts expect to persist through the decade. This supply-demand dynamic is a key argument for the ratio trending lower (toward silver outperformance) over the coming years.