Easy Money Scanner

Energy & metals

How do I trade the Gold/Silver ratio using a specialized market spread execution setup?

By Easy Money Scanner · Educational reference · Not investment advice

The short answer

The Gold/Silver ratio trade uses a spread of long one metal and short the other via CME GC and SI futures, executed as an intermarket spread order to profit from relative value mean reversion.

How it works

Traders calculate the ratio (gold price divided by silver price), go long silver/short gold when ratio is historically high, and reverse when low, sizing contracts to equalize dollar notional exposure.

An example

At a ratio above 90, a trader sells GC futures and buys SI futures, expecting silver to outperform gold as the ratio reverts toward its historical mean near 60-70.

Risk & limitations

The ratio can trend for years without reverting; unequal volatility between gold and silver requires careful position sizing to avoid lopsided risk.

Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.

Sources & further reading