The chart above shows the historical ratio of gold to silver up to June 9, 2025.
This ratio describes how many ounces of silver are needed to buy one ounce of gold. Currently, the ratio is back close to the 100 mark, which historically indicates that silver is significantly undervalued.
The green dotted line at a ratio of approximately 100 marks an extreme level at which silver has been considered significantly undervalued in the past.
What is striking is that every time this line has been reached or exceeded in the past, a strong counter-movement in favor of silver has followed – the ratio then always fell towards the red line in the range of 20.
Why is silver particularly attractive at present?
- Historically recurring pattern: The chart clearly shows that high phases in the gold-silver ratio (green line) have been followed in the past by massive declines to the red line – a ratio of around 20. This pattern has repeated itself several times over decades.
- Potential for extreme revaluation: Should this historical trend repeat itself, the ratio could actually fall back towards 20 from its current level of around 100. This would correspond to a dramatic outperformance of silver relative to gold – a potential price multiplier for silver investors.
- Strong fundamental demand: In addition to these technical arguments, fundamental factors also favor silver. Industrial demand – particularly in the solar industry, electromobility, and electronics – is growing steadily, creating a structural shortage.
Conclusion
The combination of historically extreme undervaluation and cyclical repetition suggests that silver currently offers a significantly more attractive risk/reward profile than gold. Potential for reversion to the mean: If the ratio returns to its historical average of around 50-60, silver would have considerable upside potential relative to gold.
And even a decline in the ratio to its historical low of 20 – as has happened several times in the past – cannot be ruled out in the long term. So those who think countercyclically and rely on historical patterns can now see a rare opportunity to invest in silver.
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.
Secure your storage space now – free of charge and without obligation
Register now for a storage space in the St. Gotthard high-security vaulting facility and receive free access to:
- our General Terms and Conditions (GTC)
- current fee tables
- annual audit reports from the auditing company BDO AG
- transparent proof of use of funds
- family discount information
- the popular children’s program “Schatz4Kids” (“Treasure4Kids”)
- as well as numerous other documents and information on storage, purchase, and resale, as well as the ratio “switching” strategy.
Register now: https://silberbar.elementum.de/
Tip for discounted entry: Enter the promotional code “50” (“Aktionscode“) and the “Vermittler” number 1000166 when registering to receive a 50% discount on the storage space setup fee.
Important: Registration is non-binding and does not commit you to anything – but it is your first step towards an independent and crisis-proof precious metal investment.
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
Disclaimer: 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.
