The gold to silver ratio is simply the amount of silver it would take to buy one ounce of gold.
For example, if the current gold silver ratio was 50 to 1, investors would need to part with 50 ounces of silver to obtain 1 ounce of gold.
For many precious metals dealers, the gold silver ratio is an important indicator in determining the best times to buy or sell.
Experienced traders consider it a good time to buy silver when the ratio is high since it is cheaper by comparison.
Likewise, when the ratio is lower, gold prices have fallen and it's a good time to invest.