Authored by Mike Maharrey via Money Metals,

Two months ago, the gold-silver ratio broke an important support level, indicating the white metal could be in the early stages of closing its gap with gold.

The gold-silver ratio indicates how many ounces of silver it takes to buy one ounce of gold given the spot price of both metals. In other words, it tells you the price of gold in ounces of silver.

The current gold-silver ratio is hovering just about 76-1. That means it takes 76 ounces of silver to buy one ounce of gold.