This is the ratio of PRICE OF GOLD divided by PRICE OF SILVER (what a great reply )..
Important is to understand what it means and how to use it for trading/investing.
This ratio shows the relative price strength of two precious metal. IF ratio is high, then GOLD has risen but SILVER has not kept pace with it. That means, silver price will catch up soon.
People use different methods to decide if the ratio is HIGH or LOW. Historic range for this ratio has been between 10 to 100.. and at current value of say 75, one can say it is high (compared to low of 10).. at the same time other person can say it is low..(compared to high of 100).
This is one of the important concept in inter-market analysis.. Same approach is also used to find Equity - Bond relationship.
Happy Trading.
