Gold-Silver Ratio Update: What Does 86.4 Mean?

The gold-silver ratio currently stands at 86.4 – a value that sends important signals to precious metals investors. But what does this concretely mean for your investment strategy?

What Does the Current Ratio Tell Us?

A ratio of 86.4 means: you need 86.4 ounces of silver to buy one ounce of gold. Historically, the average is around 60-70.

This means: Silver is currently relatively undervalued compared to gold.

Historical Context

The current ratio is significantly above the historical average. In the past, the ratio has often normalized – which would mean silver needs to catch up.

The Ratio Strategy Explained

The idea is simple:

1. Ratio high (>80): Buy silver or swap gold for silver
2. Ratio low (<60): Buy gold or swap silver for gold
3. Repeat: Profit from each normalization

This strategy has historically achieved up to 40% higher returns than simply holding a single metal.

What Should You Do Now?

With a ratio of 86.4, there is a strong case for favoring silver. Three options:

1. New purchase: Increase your investment in silver
2. Switch: Convert part of your gold to silver
3. Automation: Use the Auvesta Switch Pilot

The Switch Pilot by Auvesta automates this strategy, switching daily between metals based on your personal ratio target.

Conclusion

The current ratio of 86.4 signals an opportunity for silver investments. Whether manual or automated – the ratio strategy offers a data-driven method to optimize your precious metals returns.

Disclaimer: This analysis does not constitute investment advice. Precious metal investments are subject to price fluctuations.