The gold-silver ratio has fallen to 50, a low not seen in the past 13 years. Looking back at historical records, the last time it was this low was in 2012.

For nearly the past decade, the gold-silver ratio has been fluctuating between 70 and 90, and during the pandemic in 2020, it even soared to 100. But if we look further back to the bull markets of the 70s and 80s, the situation was completely different—initially, the gold-to-silver ratio was 19.49. As gold prices rose first, the ratio surged to 47.62, then silver caught up, causing the ratio to drop directly to 14.01. In that market cycle, silver's price increase was more than four times that of gold, and this low point later became a signal of a market top. Entering the 21st century, the gold-silver ratio repeatedly oscillated between 40 and 80 until it rose to 70-90 after the pandemic.

Now, for the first time in nearly 13 years, the gold-silver ratio has broken below 50. Essentially, this means: gold's gains are limited, while silver has surged significantly. At this point, exchanging gold for silver makes gold less attractive. After several years of both gold and silver rising together, silver's leverage effect has become quite substantial.

Therefore, for ordinary investors, choosing gold at this moment is more valuable. The reason is simple—value is returning to fundamentals, and silver's price increase has already reflected its leverage characteristics. Although geopolitical tensions, industrial demand, and expectations of interest rate cuts are driving factors for both metals, and their speculative attributes have been fully activated, at this stage, silver's volatility risk is often 2 to 3 times higher than gold's. This is the core message that the gold-silver ratio indicator truly conveys.