Eli5. Why is gold worth so much more than silver?

Question

In antiquity gold fluctuated between 5 and 15 times the value of silver. It is currently worth 80x more than silver. This despite silver having greater industrial utility and being only 19x more abundant.

In: 4

Answer 1

There is much more speculation is gold than in silver. This is because the price is higher, so it takes less space to store your horde, so it’s more sought after as a speculative metal, so the price is higher. That’s a upward price spiral in the making.