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Tactical Signals from a Gold/Silver Ratio?

Steve LeCompte | | Posted in: Gold

Can investors holding gold as inflation hedge/equity crash protection improve performance of this position by holding gold (silver) when the gold-to-silver ratio is relatively low (high)? To investigate, we track the ratio of SPDR Gold Shares (GLD) price to iShares Silver Trust (SLV) price and switch from GLD to SLV (SLV to GLD) when GLD is overvalued (undervalued) relative to SLV. Using end-of-month prices of GLD and SLV during April 2006 (limited by inception of SLV) through November 2025, we find that:

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