Gold:Silver Ratio

October 22nd, 2018
Fun Fact of The Week:
The most expensive gold coin in the world is the 1933 Double Eagle, which was sold at Sotheby’s in New York in 2002 for $7.59 million.

The Gold/Silver Ratio is the ratio of the value between both precious metals or in other words, how many ounces of silver is required to buy an ounce of gold. The ratio is used by investors to decide which metal to buy and when.

For example, if you buy silver when it’s cheaper in comparison to gold and sell it to buy gold later (when silver is overvalued relative to gold), you will make more of a profit than if you were simply diversified between the two metals.

Silver is mostly used for industrial purposes such as electronics, trophies and even eating utensils. On the other hand, Gold is seen more as an investment metal due to its high value.

The Gold/Silver ratio peaked in the first quarter of 2018, which could mean good news for the metal giving it the chance to outperform gold. Why does gold usually outperform silver? There are many reasons for this, but some of the main reasons are that investors prefer gold in their portfolios, silver is a more volatile metal than gold, and because it takes a smaller amount of money to make a greater impact on silver.

Which metal will you invest in? Visit our website and pre-book today!

Disclaimer: Information contained in this article is NOT to be considered investment advice. Do your own research and evaluate your individual situation before making investment decisions

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