Are there other assets with a high gold-silver ratio that suggest they are undervalued?

 Gold to Silver Ratio Meaning

• Calculation and Meaning: The ratio is determined by dividing the price of gold per ounce by the price of silver per ounce, indicating the number of silver ounces required to purchase one ounce of gold.
• Historical Context: Historically, the ratio has averaged between 50:1 and 80:1 in the modern era, though it reached an all-time high of over 125:1 in April 2020 during the COVID-19 pandemic.
• Investment Indicator: A high ratio (above 80:1) often suggests that silver may be undervalued relative to gold, while a low ratio (below 50:1) can indicate that gold may be the undervalued metal. Investors use these extremes as a signal to potentially rebalance their portfolios or trade between the metals.
• Market Sentiment: The ratio is influenced by market conditions; gold is typically seen as a primary safe-haven asset during economic uncertainty, while silver, which has significant industrial applications, is more affected by industrial demand and growth expectations. 
  
  
  Platinum is another asset that many analysts consider undervalued relative to gold, based on historical price ratios.

• Current Ratio: The current gold-to-platinum ratio is approximately 1.4:1, meaning gold is 1.4 times more expensive than platinum.
• Historical Average: Historically, platinum has often traded at a premium to gold, with a long-term average ratio near parity (1:1) or even favoring platinum. Prior to 2011, platinum often traded at a 1.2 times premium.
• Undervaluation Argument: This significant deviation from the historical average suggests that platinum may be undervalued and has potential for significant price appreciation if the ratio reverts to the mean over time. This is further supported by the fact that platinum is geologically much rarer than gold. 

Other Potential Opportunities

• Palladium: The gold-to-palladium ratio also fluctuates widely. While the ratio sits near 3:1 (gold is roughly three times more expensive than palladium) as of March 2025, it reached near parity (1:1) in 2021. Its high industrial demand makes the ratio volatile, and extremes can signal potential trading opportunities. It is used heavily in catalytic converters, and Its price can spike dramatically when supply is constrained, as demand often outstrips production.