What Is the Copper/Gold Ratio? Definition and Example
The copper/gold ratio compares an industrial metal with a safe‑haven metal. Here is what it measures, how to read it, and where it misleads.
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What Is the Gold/Silver Ratio? Definition and Example
What the gold-to-silver ratio measures, how to calculate it, what a high or low reading has meant, and its limits as a signal.
Key takeaways
- The gold/silver ratio is the price of one ounce of gold divided by the price of one ounce of silver: how many ounces of silver buy one ounce of gold.
- A rising ratio means gold is outperforming silver, which has tended to happen in fear and slow growth. A falling ratio means silver is leading.
- The ratio rose above 120 in March 2020 during the COVID crash, a record at the time.
- Silver is the more volatile metal: in Exent’s data, SLV’s 10-year volatility was about double GLD’s.
Market risk reading, cross‑asset context and an events calendar: see Exent →
What does the gold/silver ratio mean?
The ratio compares two precious metals that react differently to the economy. Gold behaves mostly like a monetary and safe-haven asset. Silver is also an industrial metal, so it is more tied to the business cycle. The ratio is one of several cross-asset signals investors use to read the mood of markets, alongside the copper/gold ratio.
How is it calculated?
Gold/silver ratio = gold price per ounce ÷ silver price per ounce. Illustrative: gold at $2,400 and silver at $30 gives a ratio of 80. Silver would have to rise to $40, with gold flat, for the ratio to fall to 60.
Worked example with real data
Exent’s data for the two largest metal ETFs over the 10 years to Sep 30, 2026 shows why the ratio swings: silver moves much more than gold in both directions.
| 10 years to Sep 30, 2026 | Gold (GLD) | Silver (SLV) |
|---|---|---|
| Annualized return | 11.7% | 11.6% |
| Annualized volatility | 15.5% | 30.2% |
| Maximum drawdown (monthly data) | 23.8% | 38.4% |
In the COVID selloff the ratio jumped above 120 in March 2020, as silver fell much harder than gold. See GLD and SLV.
Why it matters for a self‑directed investor
If you hold precious metals as a hedge, the ratio is a reminder that gold and silver are not interchangeable. Gold has been the steadier diversifier; silver adds more cycle risk. The guide gold in a portfolio covers the trade-offs.
Common mistakes
- Treating a “high” ratio as a timing rule. It can stay high, or go higher, for years.
- Assuming silver is “cheap gold”. Its industrial demand makes it behave differently.
- Ignoring volatility: a silver position needs smaller sizing for the same risk.
Follow the gold/silver ratio with Exent
- Market intel’s regular written notes follow gold vs silver among other cross‑asset ratios.
- Read them next to an events calendar and cross‑asset correlations, including stocks vs gold.
Frequently asked questions
Gold is expensive relative to silver. It has tended to rise when investors are fearful or growth is weak, because gold is the safe-haven metal.
The ratio rose above 120 in March 2020 during the COVID crash, a record at the time.
Historically yes. SLV’s 10-year volatility to Sep 30, 2026 was 30.2% against 15.5% for GLD.
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Educational content, not investment advice. Examples are illustrative; past performance does not guarantee future results.