Gold Silver Ratio Update
The Gold/Silver ratio was 61.28 on Thursday, down from 61.73 on Wednesday. The ratio measures how many ounces of silver equal the value of one ounce of gold. Silver is traded as a precious metal and is used as a store of value and a medium of exchange. It can be bought as coins or bars, or traded via products such as exchange-traded funds that track its price. Price drivers include geopolitical risk, recession concerns, interest rates, and moves in the US Dollar because silver is priced in dollars. Supply from mining, recycling rates, and demand levels can also affect the price. Industrial use in electronics and solar energy can shift demand and price levels. Silver often moves in the same direction as gold, and the Gold/Silver ratio is used to compare their relative values.Market Outlook And Positioning
Given the sharp 18.91% rally since the beginning of the year, we must acknowledge the strong upward momentum currently driving silver. This move has been largely fueled by the Federal Reserve’s policy pivot, as we finally saw the start of interest rate cuts in the fourth quarter of 2025. A weaker dollar environment resulting from this policy shift has provided a significant tailwind for the metal. This price strength is not just a monetary story; it is heavily supported by robust industrial demand. We saw global solar PV installations set a new record in 2025, consuming over 190 million ounces of silver according to preliminary industry data. This sustained demand from the green energy sector, combined with a rebound in electronics manufacturing, is creating a solid price floor. The Gold/Silver ratio has now compressed to 61.28, a level indicating silver’s dramatic outperformance relative to gold over the past few months. Historically, when we saw the ratio dip this low back in 2021, it was followed by a period of consolidation. This suggests the easiest gains in the silver catch-up trade might be behind us for the immediate term. With the price now above $84, implied volatility in silver options is likely elevated, presenting opportunities. Data from late February 2026 showed managed money net-long positions in silver futures reaching their highest point in over a year, a condition that can sometimes precede a short-term pullback. Traders could consider buying protective puts against physical holdings or using strategies like call credit spreads to take a cautiously neutral-to-bearish stance in the coming weeks. Create your live VT Markets account and start trading now.
Start trading now – Click here to create your real VT Markets account
