Investment Division·Medium-termPilot
Silver Gold/Silver-Ratio Trade
Buy physical silver when the gold/silver ratio is abnormally high, sell part when it reverts to its long-run mean.
- Desk
- Precious Metals
- Book
- Physical silver
- Horizon
- Medium-term · 1 – 5 years
- Last reviewed
- 11 Sept 2026
Thesis
Silver is both a precious and an industrial metal (solar, electronics) with 1.5–2× gold's volatility. The gold/silver ratio tends to mean-revert, creating a medium-term opportunity at a small, acceptable risk.
Rules
Entry
Gold/silver ratio > 80: buy in tranches; > 90: double.
Exit
Sell 50% when ratio < 65; sell the rest of the medium-term lot when < 55.
Sizing
Max 3% of NAV.
Risk limits
- Dealer bid–ask spread must be < 8%
KPIs
- Positive return measured in gold terms
Instruments
- 999 silver bars from reputable dealers
GoldSilver#silver#ratio#physical