Trading the Gold to Silver Ratio: Savvy Investment Strategy in August 2025?

Investors and traders commonly look at gold as a hedge in times of uncertainty, but many investors keep tabs on the prices of precious metals closely even in less volatile times. That’s because of interest in the gold/silver ratio, the relationship between the price between gold and silver. It’s one of the most tracked exchange rates in history — dating back to even ancient times.

Why is that, though? To grasp the importance of the gold/silver ratio you have to understand exactly what it is and its history. Dive in with our detailed guide.

The gold/silver ratio, also known as the mint ratio, tells you the quantity of silver ounces needed to purchase one ounce of gold. Calculate the gold/silver ratio by taking: gold price per ounce divided by silver price per ounce.

The measurement of the gold/silver ratio provides context to investors and traders who would like to know the valuation of these two precious metals in relation to each other.

The gold/silver ratio works by acting as a measurement of how much silver is needed to purchase gold. It acts as a tool for decision making and understanding current value.

To understand how the gold/silver ratio works, it helps to consider a practical example. Let’s say you have one ounce of gold and the ratio rises to 100. That means that during this period you can sell your one ounce of gold for a hundred ounces of silver. In this scenario, imagine the ratio then drops to a low of 50. Your one hundred ounces of silver can now be sold for two ounces of gold. With a focus on accumulating precious metal for long-term investment, you’ve now doubled your initial gold from one ounce to two ounces while staying invested in precious metals during the precious.

Investors can trade the gold/silver ratio through a savvy investment strategy, placing short-term actions based on the direction of gold in relation to silver. This is because gold is more sensitive to market uncertainty and demand in a way silver is usually not.

Assuming one owns gold as it drives up towards an unusually high figure, one can trade their gold and move that value into silver. Then, as the ratio drops to lower amounts, the trader might decide to sell their silver and buy a higher amount of gold than they originally had prior to deploying this strategy. This strategy essentially allows traders to take advantage of fluctuations in the gold/silver ratio.

There’s a number of platforms that make it easy to get started and to keep investing thereafter. These can help cure the frustration that many would expect with buying precious metals online. Hard Assets Alliance is a trusted platform that allows you to fund, buy, sell and manage your holdings all in the same platform. Providing tangible, physical precious metals directly to customers, investments are 100% real with total transparency. It’s perfect for those looking to get started and diversify their holdings.

You can use gold/silver charts as a source to help identify long-term and short-term trends in the relationship between gold and silver. The data can help you dive into whether gold or silver are undervalued or overvalued at current prices., helping you decide if it’s the right time to invest in gold or silver.

Greek, Roman and Byzantine civilizations used the gold/silver ratio even during ancient times. The ratio typically sat between 10 and 13.5 during the time of the first coins in Greece while it was set at 12 during the Roman Empire.

Moving over to modern times, the gold/silver ratio has historically ranged from 15 to over 100 with a typical range between 40 to 70.

Looking at the last ten years, dating July of 2015 to July of 2025, the gold/silver ratio has seen lows of around 60 while hitting a high of 125 in 2025. Traders who were able to take advantage of volatile times during 2020 and 2021 may have benefited from correct timing with their precious metal rotations.

Both the VIX and the gold/silver ratio are used to understand current market sentiment. The VIX, also known as the CBOE Volatility Index, is a popular measure of the volatility expected in the stock market based on S&P 500 index options. While the VIX and the gold/silver ratio both measure sentiment, they tend to behave differently. The VIX sees more short-lived, dramatic movements, while the gold/silver ratio tends to see more leveling off after a spike.

After getting a firm understanding of the gold/silver ratio, here are some tips to keep in mind.

Historical trends of the gold/silver ratio are just that — historical. They may provide context on what the future could hold but there are important factors in the present that may lead to different outcomes. Use history as a basis rather than a predictor. You may sell your gold for silver, thinking the ratio has topped out, then see new highs in the gold/silver ratio.

Each way to trade the gold/silver ratio has its own risk and rewards associated with it. There are futures contracts, ETFs and options. There’s also physical gold but that comes with the added cost of having to store it. There are powerful online marketplaces, like Hard Assets Alliance, that allow you to buy precious metals online, allowing you to store whole bars and coins in secure non-bank vaults. You can add to your holding, sell some or take delivery whenever you would like all online in a matter of seconds.

For decades, savvy investors have used the gold/silver ratio to guide their decisions on when to shift between gold and silver to accumulate more metal over time. By tracking this ratio and understanding its trends, you may be able to position yourself to make smarter moves, whether you’re looking to grow your holdings or preserve long-term purchasing power.

Platforms like Hard Assets Alliance can help you act with confidence when opportunity knocks. With tools like historical charts, real-time pricing, and flexible investing options — including secure vault storage and tax-advantaged accounts — knowledge can help empower action with confidence.

💰Sponsored Content. This post was written in partnership with Hard Assets Alliance.