This ratio reflects how many ounces of Silver are required to purchase one ounce of Gold at any given time.
As prices for these comodities change, the ratio changes.
As a point of reference, the ratio was lowest in 1980 when the Hunt brothers were trying to corner the silver market, driving the price of silver abnormally high. Such a low ratio is anomalous.
While the ratio, by itself, has little predictive power, at least two conditions are common.
1) In a recession, the Silver to Gold ratio is often high.
2) When the price of Silver is low, the ratio is high. A high ratio is one factor to look for when the price of Silver is about to rebound.
Ideally, one can trade silver for gold as momentum dictates, accumulating wealth upon the turns.
ps: trade in actual gold and silver!
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