Financial Services > Investments > Precious Metals > Gold & Silver Combined > Gold & Silver Ratio
The gold/silver ratio uses the differences in values to indicate which metal should be invested in at any one time.
For example when the ratio is high for example 72:1, one would trade their gold for silver as gold is much more expensive than silver. But when it is low for example 35:1 one would purchase gold again.
Using the ratio in this way supposedly carries less risk than simply investing in one or other or both and forgetting about it. Additionally each sequence of trading gold to silver then back to gold again increases the quantity of precious metal you own as well as an increased trade value.
The same ratio can be used in relation to buying and selling shares of gold and silver as well as physical metals.
| investments news |
|---|
| Pensions are not the only investment option - Wed, 01 Sep 2010 |
| SIPP holders want to make their own investment decisions - Fri, 27 Aug 2010 |
| Investment company urges Britons to be sensible selecting a credit card - Wed, 25 Aug 2010 |
| More News |