Source: Investopedia.com
Gold/Silver Ratio
What Does it Mean?
A ratio, x:1, demonstrating how many ounces of silver (x) it takes to purchase one ounce of gold – the fixed variable. The ratio fluctuates, standing at 12.5 in 323 BC compared to 51 in 2007. Investors use the ratio to evaluate the relative value of silver and to decide if it’s an optimal time to purchase gold or silver and how to diversify their precious-metal holdings.
No comments:
Post a Comment