XAU
XAG
What the gold silver ratio measures
The gold silver ratio tells you how many ounces of silver one ounce of gold buys at current prices. It is the gold price divided by the silver price, with both quoted in the same currency and the same unit of weight.
The ratio has no unit. It shows relative value: whether gold is expensive or cheap compared with silver. It does not show whether either metal is expensive in rupees or dollars. Both metals can rise while the ratio falls, or both can fall while it rises.
Traders follow it because gold and silver often move in the same direction, but at different speeds. Silver is a smaller market and has more industrial demand, so its price usually swings harder than gold's in both directions.
How to calculate the ratio from two quotes
You need two prices taken at the same moment, in the same currency and the same unit.
- Open the gold quote, for example XAUUSD (gold in US dollars per troy ounce).
- Open the matching silver quote, XAGUSD (silver in US dollars per troy ounce).
- Divide the gold price by the silver price.
Points that keep the result honest:
- Use the same side of the quote. Divide bid by bid, or use the mid price of each (halfway between bid and ask). Mixing a bid with an ask adds a small error.
- Match the currency. XAUEUR with XAGEUR works, and so does XAUUSD with XAGUSD. Do not divide a dollar gold price by a euro silver price.
- Match the weight. Local prices in Pakistan are usually quoted per tola. If you have gold per tola and silver per tola, both in PKR, the ratio comes out the same, because the unit cancels. For local gold pricing, see Gold in Pakistan.
Gold silver ratio today
We do not publish a live ratio value on this page. Any figure printed here would be out of date within minutes. To see the gold silver ratio today, take the current XAUUSD and XAGUSD quotes from your platform and divide them as shown above.
In MetaTrader you can watch both symbols side by side in Market Watch. For more on each metal, see XAUUSD gold and XAGUSD silver.
How the ratio has behaved over time
- Under historic bimetallic standards, governments fixed the ratio by law, so it barely moved.
- Once both metals traded freely, the ratio started to move across a wide range and has stayed that way.
- In financial crises and recessions, the ratio has tended to rise. Gold works as a safe-haven asset, while silver falls with industrial demand.
- In strong industrial cycles or broad metal rallies, the ratio has tended to fall, because silver catches up faster.
- The ratio has stayed high or low for long stretches. Moves back toward an "average" have often taken years, not weeks.
Why the ratio is not a timing signal
A common idea is that an "extreme" ratio must return to normal. The ratio gives no information about when that might happen, and it may not happen at all:
- There is no fixed normal level. The long-run average depends on which years you include, and supply, mining output and industrial use change over time.
- Extremes can get more extreme. A ratio that looks high can keep rising, and a position sized for a quick reversal can run out of margin first.
- Each leg has its own costs. A ratio trade means two positions. Each one pays a spread, may pay a commission, and may pay swap overnight. See Swap fees.
- Leverage cuts both ways. Leveraged CFD trading can lose money fast. Two legs mean two sources of loss if prices move against you.
Use the ratio as context, alongside the tools covered in Fundamental analysis and Risk management.
Gold to silver ratio trading: the mechanics
A ratio position combines a long position on one metal with a short position on the other. A long position gains when the price rises; a short position gains when it falls. Such a position tracks the ratio only if both legs have a similar money value (notional).
The contract sizes differ. On Exness, XAUUSD has a contract size of 100 troy ounces. For XAGUSD, check the specification in the platform. Matching notional values means working out the lot size for each leg separately. The Calculators page helps with that.
From the Exness specification for XAUUSD:
| Item | XAUUSD |
|---|---|
| Account types | Standard, Standard Cent, Pro, Raw Spread, Zero |
| Contract size | 100 troy ounces |
| Volume | Min 0.01 lot, max 200 lots |
| Trading hours | 24/5 |
| Swap schedule | Triple swap on Wednesday |
These conditions can change. Check the current specification for both metals in the platform or the Exness personal area before you open anything.
Pakistani residents should also read Law and regulators. On offshore platforms, per the SBP, remitting foreign exchange to overseas forex/margin/CFD platforms is not allowed through any payment channel (FERA s.5(1)).
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Frequent questions
What does a high gold silver ratio mean?
Gold is expensive relative to silver: one ounce of gold buys more ounces of silver than usual. It says nothing about where either price goes next.
Can I calculate the ratio with Pakistani tola prices?
Yes, as long as both prices are per tola and both are in PKR. The unit cancels out, so the result matches the dollar-per-ounce ratio, apart from local premiums.
Is the gold/silver ratio a buy or sell signal?
No. It measures relative value, not timing. The ratio has stayed at extreme levels for long periods.
Do I need two positions to trade the ratio?
Yes. A ratio position uses two legs, one long and one short. Each leg has its own spread, swap and margin, so check both specifications in the platform first.
Where can I learn the basics first?
Start with Trading basics and Metals. You can practise placing both legs on a Demo account.
