Gold versus silver: what's the ratio saying?

The gold-silver ratio swings between extremes — silver outperforms in industrial booms and risk-on rallies, gold leads in fear. The ratio is a sentiment gauge hiding in plain sight.

Gold versus silver: what's the ratio saying? — leverage and margin diagram
Leverage: a small margin controlling a larger position

Do you follow it?

  • how you read the current ratio
  • what it implies about the risk mood
  • whether you trade silver as leveraged gold
Gold versus silver: what's the ratio saying? — risk-reward diagram
A risk-reward ratio of 1 to 2

Background: what moves the gold price for the shared drivers.

Background: How to trade silver: the wilder metal

Silver follows gold's macro story and adds its own industrial demand layer — and its swings are wilder than either. Here is what drives it, how it differs from gold, and how to trade it without oversized risk.

What is XAG/USD?

XAG/USD is the price of one troy ounce of silver in US dollars. XAG is the market's code for silver, and the pair is how most retail traders access the metal.

Why is silver more volatile than gold?

Silver's market is smaller and thinner than gold's, and the metal has two demand channels — investment and industry — that can amplify each other's moves. Its percentage swings are routinely double gold's.

Read the full guide

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