Why Is Silver So Much Cheaper Than Gold?

If you’re into stacking, you’ve probably wondered:
Why does silver cost so much less than gold?

Both metals are safe-haven assets with deep monetary roots. Yet silver trades at a fraction of gold’s price. The reasons? A mix of supply, demand, perception — and opportunity.

Gold is rarer. It’s harder to mine, costlier to refine, and hoarded by central banks, which limits availability. Silver, while still precious, is more abundant both in the ground and in circulation, which keeps prices lower.

But silver’s value goes beyond scarcity. It’s also an industrial metal — used in solar panels, electronics, EVs, and medical tech. This utility drives demand but also makes silver prices more sensitive to the global economy. When industry slows, silver often takes a hit, regardless of investor interest. Gold, by contrast, is largely financial and less affected by industrial cycles.

Perception plays a part too. Gold is the heavyweight — a global store of value. Silver is seen as the “working metal” — more practical, more affordable, and often overlooked. Yet for investors, that underdog status is what makes it attractive.

The gold-to-silver ratio — how many ounces of silver equal one ounce of gold — has averaged around 50:1 historically. Today it’s often above 80:1, suggesting silver may be seriously undervalued.

UK tax rules also widen the gap: silver bullion carries VAT; gold doesn’t. And UK legal tender gold coins are CGT-free. But for long-term holders, silver’s growth potential can outweigh these costs.

In short, silver is cheaper because it’s more available, more useful, and plays a different role in the market. But that doesn’t mean it’s worth less. Many see silver’s low price not as a weakness — but as an opportunity.