Trading news

What is the gold/silver ratio?

By Giles Coghlan, Chief Currency Analyst at HYCM

The gold/silver ratio measures the relative strength of gold versus silver prices. It shows how many ounces of silver it takes to purchase one ounce of gold. To get this number, you divide the current gold price by the current silver price. When you have done this you now have the gold/silver ratio. It is a simple way to see which of the two metals is gaining value relative to the other.

The meaning of the ratio

Whenever the gold/silver ratio rises, it means that gold has become more expensive compared to silver. See the gold/silver ratio chart below:



On the other hand, when the ratio falls, it means gold has become less costly relative to silver.

Some analysts, traders, and investors look to "trade the ratio", buying silver when the gold/silver ratio is high and switching to gold when it falls. So, the next time you hear mention of the gold/silver ratio you will now know what the significance is.

Learn more about HYCM


HYCM

Friday, 21 Feb, 2020 / 10:17

Note: Company News is a promotional service of the Directory and the content isn't created by Finance Magnates.

Source :

Trading news

 

Euro rebound falters as EU rejects Eurobonds; stocks go nowhere

  Euro surrenders some gains as EU fails to agree coordinated fiscal [...]

Posted on Wednesday, 08 Apr, 2020 / 9:13 under

Don't get carried away by the 'bulls' in a 'bear' market

By Giles Coghlan, Chief Currency Analyst at HYCM Hold your horses If there [...]

Posted on Wednesday, 08 Apr, 2020 / 7:52 under

Scandex Market Update – April 8

Major U.S. indices reversed RIGHT at resistance today. These markets are [...]

Posted on Wednesday, 08 Apr, 2020 / 7:07 under