In July 2026, the Silver Institute published a new scientifically grounded market report: “Is the Gold Ratio Relevant Today?”. The central question is whether the relationship between gold and silver prices still provides a meaningful indicator for investors today, or whether the growing industrial use of silver has reduced its relevance.
The report’s answer is surprisingly clear.
THE KEY FINDING
Yes, the gold-silver ratio is still relevant today.
Following extensive historical and statistical analysis, the report concludes that despite their different uses, gold and silver remain primarily monetary precious metals. The gold-silver ratio therefore continues to provide useful guidance on whether gold or silver appears relatively cheap or expensive from a historical perspective.
WHAT IS THE GOLD-SILVER RATIO?
The gold-silver ratio shows how many ounces of silver are equivalent in value to one ounce of gold.
High ratio = Silver is relatively inexpensive compared with gold.
Low ratio = Silver is relatively expensive compared with gold.
This relationship has accompanied the history of precious metals for more than 5,000 years. The Silver Institute even refers to the gold-silver ratio as the “world’s oldest exchange rate”.
Example: If the gold-silver ratio stands at 100, 1 ounce of gold is worth the equivalent of 100 ounces of silver. If the ratio later falls to 60, silver has significantly outperformed gold. Many investors use such changes to shift their precious metal holdings between gold and silver over the long term.
SURPRISING FINDING: INDUSTRIAL DEMAND IS NOT THE MOST IMPORTANT DRIVER
Many investors assume that silver is now primarily an industrial metal and that the gold-silver ratio has therefore lost much of its relevance. The report examines precisely this assumption and comes to the opposite conclusion.
The statistical analysis shows that neither inflation, interest rates, the US Dollar nor industrial production can adequately explain the long-term movements of the ratio. Investment demand for gold and silver remains far more important. Because the silver market is considerably smaller and more volatile than the gold market, silver prices tend to react particularly strongly to capital inflows and outflows.
A high correlation means that gold and silver prices often move in the same direction. If gold rises over an extended period, silver often follows, although typically with larger swings both to the upside and downside.
A LONG-TERM EQUILIBRIUM EXISTS
One of the most interesting aspects of the report is its scientific analysis. Using so-called cointegration tests, the Silver Institute concludes that the gold-silver ratio tends to move back towards a long-term equilibrium over time. Statistically, this long-term level is around 60:1.
When the ratio moves significantly away from this range, it may indicate that 1 of the 2 precious metals is relatively overvalued or undervalued compared with the other.
In other words, extreme movements in the gold-silver ratio have historically often proved temporary. This is precisely why many long-term precious metals investors use the ratio as a guide when considering shifts between gold and silver.
WHAT DOES THIS MEAN FOR ELEMENTUM?
The findings of the Silver Institute broadly align with the approach Elementum has followed for many years.
We do not view gold and silver in isolation, but as 2 closely connected monetary precious metals. The gold-silver ratio can help investors better assess different market phases.
When the ratio is historically very high, this may indicate that silver is attractively valued relative to gold. If the ratio later falls significantly, switching from silver into gold may make sense. Conversely, very low ratios can create attractive opportunities to switch from gold back into silver.
Of course, the exact market turning point can never be predicted. The ratio is not a short-term trading signal, but rather a strategic valuation indicator that can support long-term decision-making.
BOTTOM LINE
The Silver Institute’s new report delivers a clear message: The gold-silver ratio is by no means a relic of the past. On the contrary, despite silver’s growing industrial importance, it remains a meaningful indicator of the relative valuation of the 2 most important precious metals.
For long-term investors, the ratio can therefore serve as a valuable tool for assessing buying and switching decisions and for strategically positioning a precious metals portfolio.
The full English-language report by the Silver Institute is available here for download. Anyone wishing to explore the gold-silver ratio in greater depth will find it to be one of the most comprehensive scientific analyses of the subject published to date.
We would also be pleased to explain Elementum’s gold-silver ratio strategy personally and show how this established approach can be used to optimise a precious metals portfolio over the long term. Feel free to contact us at any time. We will be happy to speak with you.
How can you buy precious metals cheaply and store them safely?
Elementum Deutschland GmbH, based in Sindelfingen (Germany), specializes in trading physical precious metals. Customers who purchase precious metals from Elementum Deutschland (or one of the other national Elementum companies in five European countries) can store them in the renowned high-security vaulting facilities in the St. Gotthard Massif in Switzerland at Elementum International AG.
Of course, you also have the option of purchasing gold and silver directly and having it delivered to your desired address. However, storing silver in the so-called open duty-free warehouse (“offenes Zollfreilager”) at St. Gotthard offers decisive tax advantages:
- The 19% value added tax customary in Germany is completely waived on purchases and sales – a considerable price advantage that effectively secures you 19% more silver for your money.
- If you store your silver in this high-security vault, you can sell it back to Elementum Deutschland GmbH at any time – without any bureaucratic hassle and also without VAT, as the trade takes place within the duty-free warehouse. You will receive the funds via bank wire.
- VAT is only payable when you physically remove the stored silver – either by picking it up in person (after prior notification) or by having it shipped to your address.
More silver, more return
Thanks to duty-free storage, you receive 19% more physical silver when you buy. This additional amount also participates in the performance of the silver price if it rises – a leverage effect that significantly improves your return opportunities.
About Elementum
Elementum is a second-generation, owner-managed family business. Trust, consistency, and long-term thinking are at the heart of our philosophy. The Board of Directors of Elementum International AG is composed of internationally renowned experts in the money and precious metals markets, including economists, analysts, university professors, and precious metals specialists. This in-depth expertise forms the backbone of our actions – for your security, your assets, and your future.
About the Author
Stephan Bogner
CEO of Elementum International AG
Stephan Bogner, who holds a degree in business administration, studied economics at ISM Dortmund (Germany) and wrote the university’s first thesis on precious metals as a hedge against inflation. After studying in the UK and Australia and gaining professional experience in Dubai, he took over as CEO of Elementum International AG in Switzerland in 2012. His expertise in precious metals has had a significant impact on the company’s development.
Contact
Rockstone News & Research
Stephan Bogner (Dipl. Kfm., FH)
Müligässli 1, 8598 Bottighofen
Switzerland
Phone: +41-71-5896911
Email: info@rockstone-news.com
Disclaimer: This article reflects the personal opinion of the author. Elementum assumes no responsibility for the accuracy of the content and accepts no liability for its use. This article may contain links to external third-party websites. Elementum is not responsible for the content of these external sites and expressly distances itself from all information provided there. At the time the links were created, no unlawful content was identifiable. This article does not constitute a recommendation to buy or sell. Elementum International AG is a Swiss company that specializes exclusively in the storage of physical precious metals in a high-security vault facility located in the St. Gotthard mountain massif in Central Switzerland. The Board of Directors and Executive Management of Elementum International AG have been selected solely based on their professional expertise and long-standing experience in precious metals markets. As these individuals may also be professionally active outside their roles at Elementum International AG, the company has no influence over their external activities and respects their right to freedom of expression. Therefore, the views expressed by persons working with or for Elementum do not necessarily reflect the opinion of Elementum International AG. Investments in precious metals are subject to risks, including those specific to the structure of this market. Please read our full risk disclosures and consult a licensed financial advisor before making any investment decisions. Neither the author, Elementum International AG, nor Elementum Deutschland GmbH assume any liability for actions taken based on the information provided. Past performance is not indicative of future results. The cover picture has been obtained and licenced from shutterstock.com.
