Silver or Gold – Who will be the winner?

The silver price has recently risen more significantly than the gold price. Historically, there is still some catching up to do. However, the gold-silver ratio must be considered as the basis of the analysis.

Gold price vs. Silver price
Gold has repeatedly proven in recent years that it is the better crisis metal than silver. In contrast, the silver price usually performs better in a highly inflationary environment. And lastly, silver has caught up significantly against gold. A look at the development of the gold-silver ratio (gold price divided by silver price) also shows this. Last March, the quotient reached a new record high above 125. Recently, the gold-silver ratio was only around 92, which is still very high in historical comparison.

Effective gold-silver ratio
In practice, however, a different picture is currently emerging. Because for this you have to consider the effective gold-silver ratio as an investor – i.e. based on the prices for comparable investment products in trading. As part of an analysis in April, this effective GSR was 67 at the time, while the GSR determined on the stock exchange was 108. In the morning of the July 16, a classic gold coin for investing (1 ounce) in precious metals trading cost around 1,670 euros, while for a silver ounce (e.g. maple leaf) you had to pay around 21.80 euros.