Is gold likely to be worth more than silver in the future?


Quick Answer

Since gold is worth significantly more than silver per ounce, it is logical that gold will always be worth more than silver. For example, the live spot price of gold on April 7, 2015, was $1,211.82, but the silver spot price was just $16.92, according to JM Bullion. This substantial gap in the prices of these two precious metals is far too broad for the price of silver to ever surpass the price of gold, at least under historical market conditions.

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Is gold likely to be worth more than silver in the future?
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Full Answer

Investors use what is known as the gold/silver ratio to determine whether one metal is undervalued when compared to the other. This ratio determines how much silver can be purchased using an ounce of gold. The gold/silver ratio has historically always favored gold, states JM Bullion.

Over the past decade, the ratio of spot prices between gold and silver has fluctuated from 32:1 to as high as 84:1. A ratio of 84:1 means that an investor could buy 84 ounces of silver using 1 ounce of gold, which makes gold 84 times more valuable than silver in this scenario. This is a strong indicator that gold will always be more valuable than silver or at the very least points to the historical trend that gold is the more valuable of the two metals.

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