Silver and gold are both precious metals priced in US dollars per troy ounce, but they behave differently. More than half of silver demand comes from industry, so it responds to economic growth as well as to the forces that move gold, and its market is much smaller. The result is that silver usually moves further than gold in percentage terms, in both directions. The gold-silver ratio measures the relationship between them.
Key takeaways
- The gold-silver ratio is the gold price divided by the silver price: the number of ounces of silver needed to buy one ounce of gold.
- The ratio rose above 120 in March 2020, the highest on record, and has spent most of recent decades between about 50 and 90.
- Silver is both a precious and an industrial metal; solar panels and electronics are major uses.
- A standard silver lot is commonly 5,000 ounces, so a $0.10 move is worth $500 per lot.
- Silver tends to fall more than gold when markets sell off, despite its precious-metal label.
| Symbol | XAGUSD: XAG is the ISO code for silver |
|---|---|
| Quote | US dollars per troy ounce |
| Contract size, 1.00 lot | 5,000 ounces is the common standard |
| Value of a $0.10 move, 1.00 lot | $500 |
| Gold-silver ratio | Gold price ÷ silver price |
| Industrial share of demand | More than half |
| Typical volatility | Higher than gold |
How is silver different from gold?
| Feature | Silver (XAGUSD) | Gold (XAUUSD) |
|---|---|---|
| Main sources of demand | Industry (more than half), investment, jewellery | Investment, central banks, jewellery |
| Central bank buying | Negligible | More than 1,000 tonnes a year recently |
| Market size | Much smaller | Much larger |
| Sensitivity to economic growth | High | Low |
| Behaviour in a market panic | Often falls with other industrial assets | Often rises |
| Typical daily move | Larger | 1–2% |
| Common lot size | 5,000 oz | 100 oz |
| Read more | This guide | XAUUSD guide |
What is the gold-silver ratio?
Divide the gold price by the silver price. If gold is $4,000 and silver is $50 (illustrative prices), the ratio is 80: it takes 80 ounces of silver to buy one ounce of gold. A rising ratio means gold is outperforming silver; a falling ratio means silver is outperforming.
| Ratio is… | What it has usually coincided with | Caution |
|---|---|---|
| High or rising | Economic worry: gold is bid as a haven while industrial demand for silver weakens | It can stay high for years |
| Low or falling | Strong growth, inflation fears or speculative interest in silver | Sharp silver rallies have often reversed quickly |
| At an extreme | March 2020: above 120 during the pandemic sell-off | Extremes are visible only in hindsight |
Some traders treat the ratio as a signal that one metal is cheap relative to the other. There is no level at which it must turn, and a position built on that idea carries the risk of both metals.
What moves silver?
| Driver | How it tends to work | What to watch |
|---|---|---|
| The gold price | Silver follows gold’s direction most of the time, with larger swings. | what moves gold |
| Industrial demand | Solar panels, electronics and vehicles use silver, so manufacturing strength supports it. | PMI surveys, solar installation data |
| The US dollar and real yields | Same effect as on gold. | gold and real yields, how the US dollar affects commodities |
| Risk sentiment | In a sell-off silver often trades like an industrial metal and falls. | risk-on vs risk-off |
| Speculative flows | A small market means fund and retail flows can move the price sharply. | Futures positioning data |
Contract size and position size
| Lot size | Ounces | Value of a $0.10 move | Value of a 2% move at $50 |
|---|---|---|---|
| 1.00 | 5,000 | $500 | $5,000 |
| 0.10 | 500 | $50 | $500 |
| 0.01 | 50 | $5 | $50 |
A silver lot is fifty times the ounces of a gold lot, which catches people out. At $50, 0.10 lots is $25,000 of exposure. A 2% day, which is ordinary for silver, is a $500 move on that position. Check the contract specification and size the trade with position sizing; margin and leverage for metals are usually set differently from currencies.
What it costs to trade silver as a CFD
Silver is traded as a CFD in the same way as gold: no metal is delivered. See what a CFD is.
| Cost | When it applies | Note for silver |
|---|---|---|
| Spread | Every trade, at entry | Wider than gold in percentage terms; widest outside the London–New York overlap |
| Commission | Depends on instrument and account type | Shown in the symbol specification in MetaTrader 5 |
| Swap / overnight financing | Positions held past the daily rollover | A long position normally pays financing, as with gold. |
| Contract rollover | Only if the CFD is based on a futures contract | The price adjusts when the underlying contract changes. |
| Slippage | Fast markets, gaps, news | More frequent than in gold because the market is thinner |
Key risks
Higher volatility. Percentage moves are typically larger than gold’s.
Large contract size. A 5,000-ounce lot makes small price changes expensive.
Not a reliable haven. Silver has fallen hard in several equity sell-offs.
Thin liquidity. Gaps and slippage are more common than in gold; see gap risk.
Risk warning. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, the products offered on this website may not be suitable for all investors because of the risk of losing all of your invested capital. You should never invest money that you cannot afford to lose, and never trade with borrowed money.
How to trade silver at Marketsall
Silver is listed as XAGUSD on MetaTrader 5 and Web Trader. Read the symbol specification for contract size, margin and swap rates before a first trade; how to read contract specifications on MT5 shows where they are. Practise on a demo account first, keeping in mind the differences covered in demo vs live accounts, and set the position size before opening the ticket with position sizing.
Frequently asked questions
What is the gold-silver ratio?
The gold-silver ratio is the price of gold divided by the price of silver. It shows how many ounces of silver are needed to buy one ounce of gold. If gold is $4,000 and silver is $50, the ratio is 80.
Why is silver more volatile than gold?
The silver market is much smaller than the gold market, so the same amount of buying or selling moves the price further. More than half of silver demand is industrial, which adds sensitivity to the economic cycle, and central banks do not hold silver as they hold gold.
What does XAGUSD mean?
XAGUSD is the price of one troy ounce of silver in US dollars. XAG is the international currency code for silver: X marks a non-national currency and AG is silver’s chemical symbol.
What is a high gold-silver ratio?
There is no fixed threshold, but the ratio has spent most of recent decades between about 50 and 90. It reached a record above 120 in March 2020. A high ratio means silver is cheap relative to gold by historical standards, though it can remain high for a long time.
Is silver a safe haven like gold?
Only partly. Silver shares gold’s monetary history and often rises with it, but because industry accounts for more than half of demand, silver frequently falls with other industrial assets when markets fear a recession. Gold has been the more reliable haven.
Related reading
Check how closely the metals move
Silver is often treated as a stand-in for gold; the Commodities quick view in the cross-asset correlation tool shows how closely their daily returns have tracked over a period you choose, and how to calculate margin on MT5 helps compare what each position ties up.
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