Central banks want Gold but not silver?

#1 · November 6, 2025, 4:28 pm

Hey am I the only one confused by this: Central banks are absolutely stocking up gold like there's no tomorrow. Record buying, diversifying away from fiat. It's been super bullish for the yellow metal - great for stackers like me 😅

But then you look at the Gold/Silver Ratio, it's still sky-high (82.50 - yes it's come down a bit but still)

Why are central banks buying so much gold but seemingly ignoring silver?

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#2 · November 6, 2025, 6:35 pm

Gold is a more important monetary metal which is more appropriate for central banks. Silver is of course a traditional monetary metal but people don't use coins any longer but it is one of the most important industrial metals and seems to stay in that lane now.

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#3 · November 6, 2025, 7:59 pm

Yeah that make sense, but isn't that part of the argument for silver? I guess my question is whether that industrial demand is enough to eventually force the Gold/Silver Ratio down to its historical average (around 50-60), or if central bank purchasing power alone is enough to keep gold miles ahead.

Time will tell. I'm loading up the truck either way.

Appreciate the response mate 😉

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#4 · November 7, 2025, 8:38 am

Who knows, I wonder if the historic gold-sliver ratio is even relevant any more but I have no real idea. Perhaps gold is attractive to central banks because it's almost purely a monetary metal with even gold jewellery being a form of savings in some countries? Silver gets consumed - So much ends up in landfill and imagine how much silver is vaporised every day in the Ukraine war - Every missile has plenty of silver in it. And if some theories are correct about a possible scenario that a country like the US or China has plans to clear debt by re-valuing their gold holdings much higher to gold-back their currency then maybe every central bank wants to be ready?

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#5 · November 7, 2025, 2:05 pm

Hey guys I'm new around here. Wanted to jump in to say that GSR was part of the reason I started buying silver, but I'm also well aware that even though it could turn in silvers favour, that might not actually be a good thing. Consider this scenario:

Silver drops 20% and gold drops 25%, if this happens the GSR moves 5% in favour of silver, but technically us stackers lose out!

So while GSR is definitely relevant, its not the be all and end all.

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#6 · November 7, 2025, 2:43 pm

@shaddam-iv

Yep silver does get consumed in a way gold doesn't (literally being vaporised in bombs right now 😫). not the case for gold i know,
and the gold-backed currency theory goes some ways in explaining the central banks preference for it over silver.

@vaulted
Welcome mate. I use the ratio to allocate between gold and silver, buying whichever is relatively cheaper. Here's to hoping both metals trend upward in value, as opposed to what you layed out in that scenario, which would be a crappy outcome for us 😅

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