For investors in precious metals the
gold-to-silver ratio is one of the most important indicators available and can
help them decide whether it is the right time to buy or sell their gold or
silver bullion. The ratio represents the amount of silver needed to buy an
ounce of gold, and it can be calculated simply by dividing the price of gold by
the price of silver.
If you’re making bullion investments or trading in gold, silver and other precious metals, you can use the gold-to-silver ratio as a signal to prompt you to buy or sell. The consensus of investors and experts in this area is that a high ratio favours silver, whereas a low ratio tends to favour gold. Experienced investors who closely follow the movement of the gold-to-silver ratio regularly use this rule of thumb, trading their silver for gold and vice versa when the ratio rises or drops.
It is important to remember that the gold-to-silver ratio is not a precise guide to buying or selling bullion, but it is an important and useful measure. Those new to gold and silver trading may find the ratio difficult to follow initially, as it can fluctuate dramatically over any given time period, but with a little experience, investors can learn to read the signals hidden in the rising and falling of the gold-to-silver ratio and profit from the information.
At the beginning of the last century, the ratio was fairly steady and hovered at around 16, due to the fact that many nations were using currencies backed by gold or silver. But as the twentieth century drew on, the ratio began to rise and throughout the last hundred years, the ratio has averaged in the 47-50 range, though it has fluctuated significantly.
Some experts have predicted that the gold-to-silver ratio will eventually return to its historical pre-1900 level of around 16:1, but this is far from certain, as it would require a significant rise in the price of silver. What is certain is that investors can profit from using the gold-to-silver ratio. Analysing the rise and fall of the ratio over time can reveal useful clues and underlying trends that can inform a successful buying or selling strategy.
For those trading in gold and silver bullion, secure and convenient storage for their physical investments is also an important consideration. Bullion for Less offer two state-of-the-art safe deposit locations in the South Wales region, enabling investors to purchase and store their physical bullion investments under one roof. With Bullion for Less, your gold and silver bullion investments have never been safer or more convenient.
If you’re making bullion investments or trading in gold, silver and other precious metals, you can use the gold-to-silver ratio as a signal to prompt you to buy or sell. The consensus of investors and experts in this area is that a high ratio favours silver, whereas a low ratio tends to favour gold. Experienced investors who closely follow the movement of the gold-to-silver ratio regularly use this rule of thumb, trading their silver for gold and vice versa when the ratio rises or drops.
It is important to remember that the gold-to-silver ratio is not a precise guide to buying or selling bullion, but it is an important and useful measure. Those new to gold and silver trading may find the ratio difficult to follow initially, as it can fluctuate dramatically over any given time period, but with a little experience, investors can learn to read the signals hidden in the rising and falling of the gold-to-silver ratio and profit from the information.
At the beginning of the last century, the ratio was fairly steady and hovered at around 16, due to the fact that many nations were using currencies backed by gold or silver. But as the twentieth century drew on, the ratio began to rise and throughout the last hundred years, the ratio has averaged in the 47-50 range, though it has fluctuated significantly.
Some experts have predicted that the gold-to-silver ratio will eventually return to its historical pre-1900 level of around 16:1, but this is far from certain, as it would require a significant rise in the price of silver. What is certain is that investors can profit from using the gold-to-silver ratio. Analysing the rise and fall of the ratio over time can reveal useful clues and underlying trends that can inform a successful buying or selling strategy.
For those trading in gold and silver bullion, secure and convenient storage for their physical investments is also an important consideration. Bullion for Less offer two state-of-the-art safe deposit locations in the South Wales region, enabling investors to purchase and store their physical bullion investments under one roof. With Bullion for Less, your gold and silver bullion investments have never been safer or more convenient.
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