The gold-silver ratio widened to 64.3 on June 23, up from 63.5 a week ago, as silver's 1.32% decline outpaced gold's 0.52% drop. Silver has gained 12% year-to-date against gold's 15%, a 3-percentage-point divergence that highlights silver's sensitivity to industrial demand headwinds.
Historically, the gold-silver ratio averages 72 over the past 20 years and 85 over the past 100 years. The current reading of 64.3 suggests silver is trading above its long-term relative value against gold. During the 2020 silver rally, the ratio compressed to 56; the 2025 low was 61.
Silver's elevated valuation relative to gold reflects different demand drivers. Central bank gold purchases (1,050 tons in 2025) have created a structural buyer absent in silver. Silver's industrial demand, while growing, introduces cyclicality that gold does not share.
The silver market remains in a physical deficit. The Silver Institute projects a 142 Moz deficit in 2026, the fifth consecutive year of shortfall. However, above-ground inventories of approximately 1,800 Moz act as a buffer, preventing the deficit from translating into a sustained price premium.
A gold-silver ratio above 66 typically signals a buying opportunity for silver relative to gold. At 64.3, silver is moderately overvalued. If the ratio expands to 68+, consider rotating 10–15% of gold hedge into silver. Below 62, silver is expensive — reduce exposure.