Gold-Silver Ratio History

Gold/Silver Ratio 1968-2022

From 1/3/1978 to 7/1/2022, the gold/silver ratio increased from 35 to 91 in this 44.5-year period. This results in an absolute increase of %157 and an annualized increase 2.1%.

Important Gold/Silver Ratio Facts

  • For the 20th century, the average gold/silver ratio was 47:1.

  • From 2000-2020, this historical ratio was around 60:1, which is about 60% above its 20-year average.

  • On March 19th, 2020, the gold/silver ratio hit an all-time high of 123.

  • The gold-to-silver ratio tends to spike during times of economic instability. This is because silver is used more in industry than gold (meaning silver is more sensitive to economic activity).

  • 50% of silver’s demand is industrial

  • 11% of gold's demand is industrial

How Has the Gold Silver Ratio Been Affected by Financial Events?

1980 Recession

The 1980 Recession spanned six months, from January 1980 to July 1980. The gold/silver ratio increased from 18.82 to 39.16 over that time. This was an absolute increase of 108% or an annualized increase of 333%.

1981-1982 Recession

The 1981-1982 Recession spanned 16 months from July 1981 to November 1982. The gold/silver ratio decreased from 50.75 to 41.92, resulting in an absolute decrease of 17.4% or an annualized decrease of 13.4% during this period.

Stock Market Crash of 1987 (Black Monday)

The stock market crash was a one-day financial crisis (known as Black Monday). From October 19, 1987 - October 20, 1988, the stock market dropped 22.6%. The gold-silver ratio increased from 57.72 to 61.47 the following day resulting in an overall increase of 6.5%.

Early 2000s Recession (Dot-Com Bubble)

The early 2000s recession lasted eight months, from Mar 2001–Nov 2001. The gold/silver ratio climbed from 59.14 to 65.99 for an absolute increase of 11.6% or an annualized increase of 17.8%.

The Great Recession (2008 Financial Crisis)

The great depression lasted one year and six months. During that time, the gold/silver ratio increased from 55.85 to 62.23, resulting in an absolute increase of 11.4% and an annualized increase of 7.48%

COVID 19 Recession

The COVID 19 Recession was a two-month recession lasting from February 2020 to April 2020. The gold-silver ratio jumped from 88.39 to 113.75, resulting in a 29% increase over two months (354% annualized increase).