The gold-silver ratio equals the gold spot price divided by the silver spot price. A ratio of 70 means one troy ounce of gold equals about 70 troy ounces of silver at spot.
How to calculate it
Divide gold spot price per troy ounce by silver spot price per troy ounce.
Because both prices use troy ounces, the output is an ounce-to-ounce comparison.
What it can and cannot tell you
The ratio can show relative movement between gold and silver.
It does not include coin premiums, taxes, bid-ask spreads, storage, or liquidity constraints.
Physical market reality
A silver coin can carry a high premium during tight retail markets.
A gold bar may trade closer to spot than small fractional coins. That means real swap math can differ from the spot ratio.
Common questions
Is a high gold-silver ratio good for silver?
Some investors interpret a high ratio as silver being cheaper relative to gold, but the ratio alone is not a complete trading plan.
Does the ratio use gold and silver premiums?
No. The standard ratio uses spot prices before retail premiums and transaction costs.