Have you heard of the gold silver ratio If you've been around precious metals For a while then you probably know what It is maybe you even know how it works But if you're new to Precious Metals It's very possible you've never heard of The gold silver ratio before now either Way did you know that you could use this Tool to potentially double triple or Even quadruple your gold and silver Holdings with little to no effort at all In this video we're going to talk about What the gold silver ratio is and how to Use it correctly okay let's do it Foreign Thank you so much for watching my video I do sincerely appreciate it we're gonna Jump right into the gold silver ratio or The GSR so if you look at the top right On your screen you'll see the live Updating uh prices for gold silver Platinum Palladium uh there's some other Things in there as well and then down Here on the right it says gold slash Silver and this number right here 88.35 0.36 it's changing obviously Because the price of gold and silver are Changing as I'm filming but that is the Gold silver ratio so if you take this Number and you multiply it by the price Of silver you will get the price of gold Okay so basically how many ounces of Silver does it take to have the same Value as one ounce of gold now of course
We're talking about the spot price we're Not talking about physical battles when We look at the gold silver ratio so if You wanted to figure out what the gold Silver ratio is using physical Metals You would have a different number than This number right here because of course There's premiums when you buy or sell Silver same with gold you know so the The actual gold silver ratio is going to Be slightly different than this number Here but whenever we talk about the gold Silver ratio usually we're talking about Spot price and essentially how many Ounces of silver equal one ounce of gold So this number right here 88.39 is this a large number or a small Number when we look at the gold silver Ratio you know what does this number Actually mean well a lot of people will Actually look at the gold silver ratio And decide if they should be purchasing Gold or purchasing silver based on what This number is and so this number is Actually a fairly High number if we look At historical averages the gold silver Ratio is usually around 60. so this Number 88 is a high number now should You buy silver or should you buy gold When the gold silver ratio is high well You should buy silver because Essentially it's saying that silver is Undervalued compared to Gold so if this Number was like 100 or 200 or I don't
Know 300 you'd really want to buy silver You'd only want to buy silver in fact if This number went up to like 200 I would Sell every ounce of gold that I have and Take that money and immediately buy Silver so the higher the number is the Better a buy silver is and the reverse Is also true the lower this number goes The more appealing gold looks because Gold is becoming undervalued compared to Silver so if this number drops to 50 or 40 or 30 30 well it's time to buy only Gold in fact if this number gets low Enough you should probably sell your Silver maybe not all of it but probably Sell most of your silver and use that Money to immediately buy gold so that's What we're going to be talking about We're going to talk about how to play The ratio how to use it to your Advantage to end up with more gold and More silver because who wouldn't want to Have a stack that's twice as big as Their current stack right now what if You could do that without spending any Money at all that would be great right So why would you not play the ratio if You have the opportunity to play it now Before we talk about playing the ratio I Want to give you a few general rules of Thumb when it comes to the GSR so if the GSR is above 80 then you really want to Be focusing most of your money on Silver So if you want to Stack silver or gold
You look at the GSR if it's above 80 you Should be stacking mostly silver so Right now now you should be buying Mostly silver now if the GSR is between 80 and 60 then I say you should buy a Combination of the two by some silver Buy some gold and then if the GSR goes Below 60 you should focus more heavily On gold at that point so I'm not saying You need to go out and sell your silver And buy gold or vice versa all I'm Saying is when you're focusing on Stacking that's what you should kind of Use as your your guide so again above 80 By silver between 80 and 60 by silver And gold and below 60 buy gold okay now Let's talk about using the gold silver Ratio to your advantage this is how you Get more metal in your stack how you Double triple your gold or silver Holdings so we're looking at the five Year gold to Silver ratio chart now You'll notice that the high was back in 2020 this is right when Co Ovid was Getting kicked off the GSR hit 125.89 that is the highest the gold to Silver ratio has ever been at that point In time gold was priced around where it Is today it was about 1650 or something Like that for an ounce of gold and the Price of silver came down to around 13 An ounce I want to say and so it's kind Of The Perfect Storm I mean gold was Doing pretty well silver was priced
Ridiculously cheap and as a result we Had this record-breaking level the low On this chart 64.16 that was in 2021 this is when Silver went up to about 28 dollars an Ounce so silver was around 12 or 13 Dollars an ounce here and right here it Was around 28 dollars an ounce so if the Price of gold just stays flat and we see Silver shoot up and shoot down you you Can kind of see how you could play the Ratio to your advantage right and so When we look at the GSR obviously it Factors in price of gold going up and Down and the price of silver going up And down but if you just play the Peaks And The Valleys then you can actually Really really expand the amount of gold Or the amount of silver that you own Okay now we're looking at the 15-year Gold silver ratio chart we're going to Dissect this one a little bit and I'll Explain to you how you can play the Ratio and and use it to your advantage Right so again the high 125.89 in 2020 the low on this chart was Back in 2011. this is when silver was Basically at its all-time high silver Was around fifty dollars an ounce and The GSR was 31.64 now if we take the low 31.64 and We multiply that by four you will almost Exactly get the high right here 125 so This is 4 times greater than this point
In the chart right here which is kind of Crazy that in just 10 years the gold Silver ratio could go up four times okay Now let's use this chart and talk about A situation where someone actually Triples the amount of silver that they Own without doing anything but playing The ratio so for this scenario we're Going to start back in 2011 when the GSR Was at a low and let's say this person Took a one kilo silver bar down to their Local coin shop and they sold it and Then they took that money and Immediately bought gold so a one kilo Silver bar has just over 32 ounces of Silver in it and because the ratio is 31 They should be able to sell this kilo Silver bar and buy an ounce of gold Let's say gold has a little bit of a Premium on it but either way it's going To be fairly close so at this point in Time they have have one ounce of gold And they wait 10 years they wait for the Ratio to go up well what are they doing During that time the gold is sitting in Their safe and it's not like they're Working and you know making money to buy More silver they're not doing anything They're just sitting on their gold and Once the ratio comes up to 125 they go Back to that same local coin shop sell Their one ounce of gold and use that Money to buy silver well because the Ratio is now 125 it's not like they're
Buying one kilo of silver no they're Going to buy much more than that now we Know silver has a premium they're not Gonna be able to buy silver at spots so Let's just say they're only able to buy A hundred ounces of silver okay which I Think is fairly reasonable that's like a 25 premium Um and so I think that's probably Something that they could do in real Life but either way they had a kilo Silver bar now they have a hundred ounce Silver bar which is over three times the Amount of silver and they did nothing But play the ratio so this is crazy I Mean you could do this forever you know You buy your 100 ounces of silver here Now you wait for the GSR to come back Down into the 30s you sell your 100 Ounces of silver now you're not buying One ounce of gold now you're buying Three ounces of gold right so you have Three ounces of gold wait for the ratio To go back up sell that and now you have What 300 ounces of silver and you keep Doing this back and forth and over a Long period of time you can see you Could actually end up with way more Silver or way more gold than you Initially started out with and again It's not like you're working and making Money to actually buy more silver buy More gold you're not doing any of that You're just simply playing the ratio so
This is a really cool thing that people Actually do and it's not like you're Always going to be able to play it Perfectly I think in real life you know If you could just double your gold or Silver Holdings every 10 years by Playing the ratio go this is something That seems more reasonable so you know When the GSR is 80 maybe you sell all of Your gold for silver and then when it Goes down to 40 you sell all your silver For gold and you pretty much double your Holdings at that point that's probably More reasonable that's probably more in Line with what you could expect but I Just wanted to bring up this concept Because I know there are a lot of people Who have recently got into gold recently Got into silver and maybe they don't Fully understand how the ratio works and How you could take advantage of it and So I hope I explained it well in this Video if you have any questions or Thoughts you can leave those down below In the comment section but yeah this is A really cool concept I would say in General you know when should you Actually sell your silver for gold when Should you sell your gold for silver I Would not do it unless the ratio is at An extreme point So if we see the ratio go down back into The 40s or 30s I absolutely will be Selling my silver for gold but if it
Just dips down into the 60s or maybe High 50s then you know maybe I'll sell a Little bit of silver for gold but I'm Not going to go all in unless the ratio Goes really low so that's kind of where I'm at and then vice versa you know if The ratio does go back up to you know 120 125 130 whatever then I probably Would sell some of my gold for silver But with the ratio where it's at today You know around 88 I'm kind of just Buying more silver that's kind of my Strategy right now if you have a Specific strategy for playing the ratio Please put that down below in the Comment section as well I do want to say A massive thank you so much for watching My video and I will see you all in my Next one silver dragons out
