Gold or Silver? Comparison and the Gold/Silver Ratio
Gold or silver – which should you buy? Many people starting out with precious metals ask this question. Both metals are physical tangible assets without the default risk of a debtor. But they differ significantly in volatility, tax, space required and market size. This page compares both metals in figures and explains the gold/silver ratio. Past performance is no guarantee of future results.
What gold and silver have in common
Both metals have been used as money and a store of value for thousands of years. Held physically, they are not a third party’s promise to pay. Neither pays interest, and in Germany the same income tax rule applies to both: gains are tax-free after a holding period of more than one year (§ 23 EStG).
The differences lie in demand. Gold is bought mainly as jewellery, as an investment and by central banks. Around 58% of silver goes into industry (The Silver Institute, data for 2025). That is why silver reacts more strongly to the economic cycle.
Gold and silver compared
The table summarises the main differences. The space figures are based on prices on 4 November 2026 (€115.88 per gram of gold, €1.49 per gram of silver) and densities of 19.3 g/cm³ for gold and 10.5 g/cm³ for silver. Premiums and VAT are not taken into account.
| Criterion | Gold | Silver |
|---|---|---|
| Average volatility per year (six decades) | around 16% | around 29% |
| VAT in Germany | none on investment gold (§ 25c UStG) | 19% (§ 12 UStG) |
| Tax on gains in Germany | free after more than 1 year (§ 23 EStG) | free after more than 1 year (§ 23 EStG) |
| Quantity for €10,000 | around 86 g | around 6.7 kg |
| Storage space for €10,000 | around 4.5 cm³ | around 640 cm³ |
| Value transferred daily in London (June 2026) | $70.9 bn | $12.9 bn |
| Industrial share of demand | low | around 58% (2025) |
| Gold/silver ratio (4 November 2026) | 1 ounce of gold | equals 77.7 ounces of silver |
What is the gold/silver ratio?
The gold/silver ratio tells you how many ounces of silver you get for one ounce of gold. It is calculated by dividing the gold price by the silver price. On 4 November 2026, gold stood at $4,061.18 and silver at $52.25 per ounce. This gives a ratio of 77.7.
For context: the average of annual values since 1971 is 60.5, according to metalcharts.org. In the 20th century the ratio averaged around 47; in the 21st century so far, around 68. In the 52 weeks to early November 2026 it ranged between 46.3 and 83.4. The ratio itself is therefore very changeable.
Is the ratio a buy signal?
A high ratio means that silver is cheap relative to gold – measured against the past. Some investors therefore switch from gold to silver when the ratio is high and back again when it is low.
There is no guarantee for this. No law brings the ratio back to its average. The average itself has shifted over the decades, and the ratio can remain far from it for a long time. It is useful as a guide, not as a forecast.
Storage: silver takes up a lot of space
At the price on 4 November 2026, €10,000 buys you around 86 grams of gold. That corresponds to about 4.5 cubic centimetres. The same amount in silver is around 6.7 kilograms or about 640 cubic centimetres – a good 140 times the volume.
If you store silver at home, you therefore need more space and a bigger safe. With professional storage, storage costs often rise with weight and volume as well. When buying in Germany, there is also the 19% VAT, which reduces the quantity you get per euro.
Gold, silver or both?
There is no universal answer. The following points help you weigh things up. This page is not a substitute for investment advice.
- Gold: lower volatility, more favourable tax treatment, little space required, very liquid market
- Silver: higher volatility, dependence on industry, 19% VAT when bought in Germany
- Both: no interest, gains tax-free in Germany after more than one year
- Gold/silver ratio: shows the price relationship, but says nothing about future performance
