|
We at Austin Rare Coins & Bullion would like to bring an important market development to your attention—one that may signal a rare opportunity in the metals market. While gold prices have surged to historic highs, silver continues to lag behind. This growing disparity has pushed the gold-to-silver ratio to levels we’ve only seen twice before in modern history. Here's why that matters—and what it could mean for your portfolio.
The 'gold to silver ratio' refers to how many ounces of silver it takes to acquire an ounce of gold. This has been a useful barometer over the years to determine when either metal may be mispriced in relation to the other.
As you probably know, gold has caught fire amidst the recent market turmoil, breaching $3200 an ounce last week. Meanwhile, silver has been hovering in the low $ 30s, creating for just the third time in history a gold-to-silver ratio greater than 100:1. Here's why this matters:
Historically, the ratio has averaged:
Around 15:1 --- during ancient times and in early American coinage
Between 40 and 70:1 — for most of the modern era
It occurred in March 2020, when it spiked to approximately 125:1, which meant it took 125 ounces of silver to buy one ounce of gold—a record high in modern history. This was caused by the early chaos of the COVID-19 pandemic, when financial markets were in a panic. Investors flocked to gold as a safe haven, while silver (which has both monetary and industrial uses) dropped sharply due to economic slowdown fears. Silver prices eventually corrected to a ratio around 75:1.
A very low ratio (30:1 or less) suggests silver is expensive in relation to gold.
A high ratio (80:1 or higher) suggests silver is cheap relative to gold.
We are fully prepared to help you take advantage of this opportunity, and given all the geopolitical and economic turmoil today, we are extremely bullish on gold and silver. Premiums on most silver coins remain very reasonable, and delivery times are quick. If you'd like to see our top silver bullion recommendations, click here. If you receive this email and would like to discuss a possible gold for silver trade, just give us a call, and we will walk you through the process.
One thing is for sure—silver appears VERY undervalued in relation to gold today, and we think it's only a matter of time before the rest of the investing world notices the same thing. Remember, silver is not only an industrial and technical commodity with multiple uses but has also been considered sound money for thousands of years. As gold continues its historic climb, the price of silver has yet to eclipse its nominal high of $50 an ounce, which occurred 45 years ago!
We think silver has a long way to go, and we also believe that it presents a compelling buying opportunity under $40 an ounce.
Check out our Best Buys in Silver Today!
Call for quantity discounts or to discuss trade scenarios.
1800-928-6468
| 
