Spot Prices and Live Metal Prices
If you’re thinking about investing in precious metals, or have already started building your portfolio, you should be keeping a close eye on the spot price and other market factors.
We have the live spot prices available on our website for you to view. This allows you to see what is happening with the prices of precious metals and whether there is an upward trend for gold or silver prices or a decrease in value. It is also worth following the financial markets, as this will often influence the live prices. You can find out the current gold price and silver price by following the links to our live price pages. You can see precious metal prices from the 18th century, view prices through a recession such as the 2008 crisis and all the way up to current day rates.
Quite often, we’ll have conversations with customers who have been following certain political events or reading about financial issues in other countries. One customer, for example, told us that silver was going to go up in the next week. Suddenly, within the week, it had gone up by a few pounds. If we had the time then we would certainly try our best to get this information to you! But of course, it is not a science, and he could have invested all his money for silver to have dropped in price. How prices are manipulated can be understood by studying the market, the large organisations buying and selling, the gold price fix and as many information sources as possible. We always advise our customers not to use a single information source. It is important to remember though, that investment in precious metals is a long term game. Please do not expect to invest your money and weeks later have made a large profit. It is easy to panic when you have invested, and then you see your metal has dropped by £10 an ounce. Just remember, fluctuations are normal. Of course, investment in precious metals (as with property, shares, etc.) is a gamble. However, if you are planning it as a long term investment, then you have a better chance of seeing a return.
Gold / Silver Ratio
The gold silver ratio is obtained simply by dividing the current gold price by the current silver price. What currency you price them in does not matter, as long as you use the same currency for each, and obviously for the same weight. So, US dollars per troy ounce will work just as well as Euros per kilogram, or British pounds per ounce. When the gold to silver ratio is high it means that gold is expensive compared with silver, or the converse, that silver is cheap relative to gold.
History of Gold:Silver Ratio
When the first coins were invented over 2,600 years ago in ancient Greece, the ratio of gold to silver was generally between 10:1 and 13.5:1, depending on the relative proximity of gold or silver mines. In the 1930's and 1940's the ratio reached 90:1 or higher, and in 1991 it peaked at about 98:1 (although, we have seen one source which claims over 100:1 peak). Other sources state that the gold silver ratio is no longer relevant in today's markets. We believe it is a worthwhile measure but would stress that it is difficult if not impossible to state what the ratio "should" be.
You may wish to view all of our articles on our gold guide.
You may wish to view all of our articles on our silver guide.
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We are not financial advisers and we would always recommend that you consult with one prior to making any investment decision.