Gold Silver Ratio 2025: Is Silver Undervalued Again?

The gold/silver ratio [GSR] is a powerful signal many investors overlook. But in 2025, with the ratio climbing again after the announcement of new Trump tariffs, this simple measure is flashing a potential buy signal for silver.

In this guide, we’ll break down what the gold/silver ratio is, why it matters now, and how you can use it to make smarter precious metals decisions.

Estimated reading time: 8 minutes

What is the Gold Silver Ratio?

The gold/silver ratio tells you how many ounces of silver it takes to buy one ounce of gold.

• If the ratio is 80, it takes 80 ounces of silver to buy one ounce of gold.
• If the ratio is 50, silver is stronger compared to gold.

This ratio has been tracked for centuries. Historically, it hovered around 15 when silver was part of the monetary system. More recently, the long-term average sits around 45–50.

Historical Gold/Silver Ratios Over Time

Here’s how the gold/silver ratio has shifted through major economic eras:

Historical data shows the GSR has returned to long-term averages time and again — often in dramatic fashion.
👉 Learn more about the gold/silver ratio’s history

📌 This long-term view shows how extreme today’s level is — and why silver may be poised to outperform.

The Gold/Silver Ratio Over the Last 125 Years

📌 This chart shows how the ratio has repeatedly reverted after major spikes — and during past bull markets, silver has dramatically outpaced gold. In 1980 the ratio dropped below 20. In 2011 it returned to 30. Could we be seeing the early stages of another major silver run?

As seen in the 125-year GSR ratio chart above, silver has a history of dramatic surges during precious metals bull markets.

In:

• 1980, the ratio dropped to under 20 — as silver spiked to nearly $50/oz
• 2011, it returned to 30, following the GFC and Fed stimulus

Each time, this followed a major ratio spike — just like what we’re seeing in 2025.

👉 Our view? We could be at the beginning of the next multi-year cycle — with silver once again positioned to gain ground on gold.

Why the Ratio Is Spiking Again in 2025

As of mid-April 2025, the ratio has jumped back above 100 — a level not seen since the COVID crash in 2020.

This sharp move followed the announcement of new Trump tariffs — read our full analysis here — which boosted safe-haven demand for gold, leaving silver behind.

What’s behind the move?

• ✅ Trump’s new tariffs: Markets reacted quickly to rising global trade tension
• ✅ Silver lagging: Gold surged faster as the preferred crisis hedge
• ✅ Industrial concerns: Fears of a potential U.S. recession have weakened sentiment for silver, which has significant industrial use — especially in electronics and solar. 👉 See global silver demand data here

📈 This widening gap could be setting up for another silver catch-up rally.

What a High Gold/Silver Ratio Means for You

A high ratio has historically been a signal to consider buying silver.

Here’s why:

• 🪙 Silver may be undervalued relative to gold
• 📉 Past peaks in the ratio have often led to strong silver rallies
• 🔁 The ratio tends to mean revert — returning to average levels over time

📊 Example:
In 2020, the ratio spiked to over 125 during the COVID panic. Within months, it dropped back to 65 — and silver doubled in price.

📌 This chart shows how silver has historically surged following major spikes in the GSR — highlighting why extreme levels are often prime entry points.

When Has the Ratio Spiked Before?

Note: Past performance isn’t a guarantee — but these patterns offer insight.

How to Use the Gold/Silver Ratio in Your Strategy

Here are 3 ways to make the ratio work for you:

1. Buy Silver When the Ratio Is High

• History shows this may be when silver is cheapest relative to gold
• Current level of 100 is one of the most extreme in recent years

📌 Gold/Silver Ratio Buy Zones: Historically, buying silver during high ratio periods has yielded strong returns when the ratio reverts.

📚 Want more help timing your purchases?
Check out our full guide on When to Buy Gold or Silver.

2. Swap Gold for Silver Strategically

• Some investors swap gold for silver at high ratios and reverse the trade when the ratio drops
• For example, sell 1oz of gold to buy 100oz of silver. When the ratio falls to 50, swap back — and gain more gold
• Many long-term investors use this strategy to accumulate ounces over multiple market cycles.
  👉 Learn how ratio trading works from Kitco

3. Use Dollar-Cost Averaging

• Spread your silver buying over time
• You reduce the risk of trying to “time the bottom” exactly

How High Could Silver Rise if the Gold/Silver Ratio Falls?

Want to see what silver could be worth if the GSR drops? Here’s a projection table showing silver prices at various gold price levels and ratios:

📌 These projections help visualise potential silver prices if the ratio returns to more “normal” levels — assuming gold holds steady.

Silver vs Gold in a Monetary Crisis

As we explain in the Gold Survival Guide eCourse, both silver and gold are real money — unlike fiat currencies that lose value over time.

But in a crisis:

• 🪙 Gold is better for storing large amounts of wealth
• ⚖️ Silver is often more practical for small transactions and spending

Smart investors hold both, adjusting based on market signals — like the gold/silver ratio.

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Quick Recap

• The gold/silver ratio is back above 100, far beyond the historical average
• Silver looks undervalued — and may be setting up for a major rally
• Consider buying silver, especially if you already hold gold
• History suggests silver could outperform dramatically as the ratio reverts

Gold Silver Ratio FAQs:

Still have questions about the ratio? Here are some of the most common ones we hear:

Final Thought: Build Sovereignty with Strategy

At Gold Survival Guide, we believe true wealth isn’t just measured in dollars — it’s measured in freedom, knowledge, and peace of mind.

The gold/silver ratio is more than a chart — it’s a powerful signal that helps you cut through market noise and make smarter, more sovereign decisions. Right now, that signal is flashing opportunity.

Whether you’re new to silver or ready to rebalance, there’s no better time to act than when the herd is looking the other way.

👉 Sign up for our free daily price alerts
👉 Or explore our latest silver deals now.

What do you think? Show us you’re alive and leave a comment below!

Editors Note: This article was originally published 18 September 2018. Fully updated 15 April 2025.