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Mooresilver | 06-04-2006 09:36 PM
Silver ratio vs Gold In history gold price was 16 times that of silver as a gauge of value. Is this correct ? Gold increased and silver fell behind ,Hunt brothers actually balanced the price ratio to past history levels. Is this correct ? silver $50 oz gold $800 oz. in early 1980s If i am wrong let me know :confused: In the silver boom large amounts of silver coin collections and family sterling treasures were sold at silver melt prices thus reducing the amount of silver to the private sector. With current ratio of 50 to 1, Is silver not under valued ? The amount of 90% coins has been reduced and sterling was melted in record amounts. Is this the current silver bars we are buying? Silver coins are money and silver, 90% coins are the best way to invest in silver. Smaller values of 90% will be exchanged when large silver bars can not. Would the public accept a silver dollar or a silver round? Just a thought I am buying 90% its already hard to find at fair price and will increase when general public gets cranked up. Friends say the ratio was 32 to 1 this being the case we are still 30% below price ratio. http://goldismoney.info/forums/images/smilies/wink.gif

Ardent Listener | 06-04-2006 09:53 PM
Re: Silver ratio vs Gold Some say 15 to 1. Ratios don't mean a lot because times change. Maybe it should be 10 to 1 now. But it's not. Is silver undervalued? Most here would say yes, but so is gold. I'm into mostly 90%, but I don't think most of it was melted. I have no problem finding 90% in my area and at a very fair price. I agree that 90% would be perferred if SHTF. Others here don't.

SilverNuts@Bolts | 06-04-2006 11:08 PM
Re: Silver ratio vs Gold Yes, 16:1 is the historical ratio and at times, it was 15:1. I think the ratio is very important. At some point, it will be that ratio. I think, it will overshoot, in the blow-off face, perhaps to 10:1 or even 8:1. People always wonder, how "high" gold will get. Nobody knows, for it depends, on a lot of "moving targets". But the ratio will tell us, where we are in the cycle. At some point, it will tell us, to sell the silver and buy some other asset. Welcome aboard<<<

runcible | 06-04-2006 11:27 PM
Re: Silver ratio vs Gold I don't believe that there is a "natural" silver/gold ratio. In past times, there were some areas of Europe where silver was considered more valuable than gold. A lot of that was due to the Orient valuing silver over gold, so silver travelled east and gold travelled west. When Spain conquered a large part of the New World, including some of the richest silver mines the world has known, silver lost value to gold. Some claim that when the US was attempting a bimetallic standard, it undervalued gold (ratio was 1/20), which (Greshem's law) lead to the disappearance of gold from circulation. Now silver is about 1/52 of gold's price. So what is the correct silver ratio? 1/1? 1/20? 1/50? I don't think there is one.

SilverNuts@Bolts | 06-04-2006 11:37 PM
Re: Silver ratio vs Gold Don't matter, one way or the other, what you believe. You are free, to believe, whatever you want; at least, for the time being. Doesn't change anything, I wrote; or thousands of years, of history.

runcible | 06-05-2006 02:44 AM
Re: Silver ratio vs Gold Perhaps, perhaps not. According to this site, it looks like about 44.5 billion ounces of silver have mined in the history of man. Only 4.25 billion ounces of gold has been mined in the history of man. That would give a "natural ratio" of about 1/10. But economics isn't solely dependent on natural ratios for value. There's reasons (good reasons such as taxes!) why gold is a better asset than silver in some parts of the world. And there is a few advantages that silver has over gold. Plus, there's always the chance that some future process would greatly increase the supply of gold or silver. From my perspective, to answer the question requires divination of future zeitgeist and technology. I know I can't do that. If you feel like you can, go ahead. If I'm wrong, I'll see that I'm wrong sometime in the future. Considering that my budget tends more towards silver than gold, I should be pleasantly surprised, unless the market corrects itself by dropping gold prices by a factor of 5. :eek:

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