DEFINITION of 'Mint Ratio'
1. The price of an ounce of gold divided by the price of an ounce of silver. The mint ratio aims to examine the relationship between gold and silver prices.
2. A fixed rate of exchange for gold and silver.
BREAKING DOWN 'Mint Ratio'
As a large producer of both gold and silver, the United States at one time participated in bimetallism, a monetary standard where the value of the country's monetary unit is defined as the equivalent of either a certain quantity of gold or silver. Such a system establishes a fixed rate of exchange for the two metals - or a mint ratio. If the mint ratio was 15, for example, one could trade 15 ounces of silver for one ounce of gold. Gold and silver are measured in units called a "troy ounce," which is equal to 31.1034768 grams.