The Gold-Silver Ratio is Flashing a Major Signal—Are You Paying Attention?

Source: Shutterstock

If you’re playing the precious metals game, you’re not just watching gold and silver prices—you’re keeping an eye on the gold-silver ratio.

And if you’re not, well, you should be.

Source: VisualCapitalist.com

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This ratio isn’t just a number; it’s a signal, a heartbeat of the metals market that traders live and die by.

Right now, that number is 90:1—meaning gold is throwing its weight around, hard.

Let’s put that into real numbers.

On March 10th, 2025, gold was sitting at $2,915 per ounce, while silver was lagging behind at $32.78 per ounce.

Historically, this ratio has swung wildly, from as low as 15:1 to over 100:1, and traders love to ride those waves, betting on whether silver will close the gap or gold will extend its lead.

The gold-silver ratio is the longest-running exchange rate in history, dating back thousands of years.

Today, smart money doesn’t just sit and watch—it plays the ratio, looking for the right moments to go heavier on one over the other.

If gold is the heavyweight champ, silver is the scrappy underdog waiting for its moment to land a knockout.

Historically, the gold-silver ratio has averaged around 65 since the 1970s, with fluctuations between 40 and 70. A current ratio of 90:1 suggests that silver is undervalued relative to gold. And here’s where it gets interesting—when the ratio hits extreme levels (above 85:1), history tells us that silver tends to snap back, often outperforming gold in the process.

For example, in the 1980s and early 1990s, the ratio peaked around 100:1 before silver surged, bringing the ratio back down.

Given today’s setup, the pattern suggests silver may be gearing up to close the gap once again.

But before we get ahead of ourselves, it’s crucial to consider other factors—industrial demand, economic conditions, and investor sentiment all play a role in where silver goes from here.

So, does this time follow historical patterns, or are we entering a new paradigm where gold continues to dominate?

That’s the million-dollar question.

I caught up with a good friend at Dolly Varden Silver the other day to try and answer that, and my conversation with Shawn Khunkhun proved silver is looking incredibly interesting to me.

Let’s dive in.

First off, the higher gold moves without silver following, the higher this historic ratio climbs—and vice versa.

Here’s how that’s played out over the last 30 years:

To me, this looks like a trend that’s possibly going to slightly break out more, or bounce off that resistance level.

The only time in history it’s really spiked through that 90+ level, was in early 2020 when the ratio spiked up to nearly 130:1 during COVID times.

Traders and investors alike were naturally rushing to gold as a safe haven.

If you zoom in to the last five years, you can see the spike more clearly on the left below:

Where I’m going with this is simple: over the past five years, we’ve averaged a gold-silver ratio of about 85:1.

Over the last 30 years? Closer to 65:1.

With gold floating around the $3,000 mark and silver sitting pretty close to the average price over the past 5 years aka not making much of a move yet, history tells me it’s only a matter of time before silver catches up—likely hitting $40 or higher in the process.

Looking pretty good, isn’t it?

But the silver: gold ratio is only one of the extremely interesting ratios I watch.

The other one is commodities-to-equities Vs. the USD.

And this is where it gets really interesting and where I look for confirmations of my trends, just to make sure I’m not biased because I’m so heavily invested in commodities:

Source: Crescat Capital

This shows the commodities market almost always bottoming out completely inversely to the peak of the equity markets.

See the tech booms and bubbles accordingly, and it starts to really look more interesting.

Now, my pal Ron Stoeferle put together some added research on this.

Except he tracked another metric, this one was how does the fed play into these theories, and how does that relate to our current situation?

Check this out:

Every major fed pivot in recent history has sent certain assets flying, see below for how this affected the Gold Miners Index (GDM)

2001 (Dot-Com Crash) – Fed cut rates from 6.50% → 6.00% (eventually 1.0%)
S&P 500: -18.76%
Gold: +20.92%
Gold Miners (GDM Index): +177.87%

2008 (Global Financial Crisis, QE1) – The money printer kicked in.
S&P 500: +32.76%
Gold: +47.90%
GDM Index: +122.32%

2016 (Market Stress from Rate Hikes) – The Fed took its foot off the gas.
S&P 500: +17.59%
Gold: +22.86%
GDM Index: +147.36%

2018 (Market Backlash to Hikes) – Fed panicked, halted QT, and cut rates.
S&P 500: +18.87%
Gold: +24.89%
GDM Index: +54.59%

2020 (COVID Crisis Response) – Fed slashed rates from 1.25% → 0.25%
S&P 500: +40.42%
Gold: +34.61%
GDM Index: +104.30%

Pattern?

Every time the Fed pivots, gold and miners massively outperform. With the bond market already pricing in rate cuts ahead, it’s time to ask:

#GotMiners?”

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Now, gold is leading the way this year, outperforming silver (and copper)—but how long can that last?

Will silver start to catch up?

Source: Mining Visuals

Based on my research, it doesn’t look imminent, but silver will absolutely catch up—and better yet, it’s setting up in a way that looks extremely bullish every six ways from Sunday.

The big moves could be just ahead.

Companies I’m watching?

1. Pan American Silver (PAAS)

   

    

   2. Wheaton Precious Metals (FVI)

   

    

   3. Endeavour Silver (EDR) (Which also had fantastic earnings today)

    

   4. Dolly Varden Silver (DV)

This gives you a solid mix of juniors and majors, and with the way the charts and macros are setting up, I think we’re in for a serious turn in commodities.

Keep your eyes open—this market could be shifting faster than you think.

And, as always, Happy Hunting!

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Disclaimer: Wealthy VC does not hold a position in any of the stocks, ETFs or cryptocurrencies mentioned in this article.