Gold vs. Silver: Which is the Superior Hedge?

The Gold-to-Silver ratio is one of the most watched metrics in the precious metals space. Historically, it has averaged around 15:1. In the modern era, it often fluctuates between 60:1 and 90:1.

Gold: The Monetary King

Gold is primarily a monetary metal. Central banks hold it as a reserve asset. It has high value-to-weight density, making it easier to store in large quantities. It is less volatile than silver but generally has less "explosive" upside during bull runs.

Silver: The Industrial Workhorse

Silver is increasingly an industrial metal. It is essential for solar panels, electric vehicles, and electronics. Because it is used up in these processes, the supply is actually shrinking more rapidly than gold. Silver is more volatile—it falls harder than gold but tends to outperform gold in the late stages of a bull market.

The Prospector's Ratio

Most small-scale prospectors focus on gold because of the sheer exhilaration of the find. However, many use their gold proceeds to diversify into silver bars for "Small Change" protection during a crisis.