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Gold Silver Ratio Explained – Bullion Charts and Prices

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The Historical Gold Silver Ratio

January 26, 2015
By: Dominick Giammarino
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Historically, the gold silver ratio has seen many changes.  The way to correctly calculate the ratio is to take the price of gold, which is $1144.10, and divide it by the price of silver, which is $15.33.  The current ratio of bullion is off from historic levels. For example, around 323 BC the gold silver ratio was around 12.5.  Around the time of the Roman Empire, it was at 12.  By the end of the 19th century it was 15, and this was considered the universal ratio around the world.

By the year 1980, when inflation was raging and gold hit $800, silver hit the price of $50 so you had the ratio of 16.  People fell out of favor with precious metals as the U.S. Economy did very well from 1988-1991.  By 1991, the ratio was 100.  Just prior to the collapse of the housing market in the U.S. the ratio hit 51 in 2007.  By 2008, the ratio was around 35-40.  As of the time of the video below (November 6, 2014) the gold to silver ratio 2014 is 74.63.

For this video, I go over the historically low gold to silver ratio of 16 versus it’s current ratio of over 74.  Even more interesting is the fact that the price is only $15.33 an ounce.  If silver were to return to it’s normal ratio of 16 then you would see the price jump to $71.50 which is an 366% increase!

Note that the old ratio assumes that for every one ounce of gold that is pulled from the ground that 16 ounces of silver are pulled out.  Geologists have stated that silver is more rare than gold because silver, unlike gold, is used up in tiny amounts and never recycled.

Should silver go to it’s actual mined ratio of just 9, then you could expect today’s price to be more like $127.12. That is a 729.22% increase!  I don’t expect the Iraqi Dinar to show the same kind of gains as gold and silver.  Buying the American Silver Eagle is the way to go.  They contain 1 troy ounces of silver.  Learn about silver ratio training, it might just well help you survive the next reset.

When I’m looking for the most up to date gold and silver prices as well as the current gold silver ratio chart live I check out http://www.kitco.com/market/

Click below for a screenshot I took (opens in new window)

http://www.cnbc.com/id/102154858  Silver price tumble triggers global scramble for coins, bars

http://www.cnbc.com/id/102156172  US Mint temporarily sold out of silver Eagles amid huge demand

What is Happening to the Gold Silver Price Ratio?

If you look at the screenshot I took along with the highlights, silver, along with gold, have hit four and a half year record lows.  There is a chance that the prices of both metals will continue to fall.  The market is, and has been manipulated for some time, especially silver.  If you wondering should you buy silver as an investment, I would say yes, you should.  Read this article on silver.  Just listen to what Mexican billionaire Hugo Salinas Price had to say about derivatives:

Hugo Salinas Price also added:  “I think we are going to see a series of bankruptcies.  I think the rise in interest rates is the fatal sign which is going to ignite a derivatives crisis.   This is going to bring down the derivatives system (and the financial system).

There are (over) one quadrillion dollars of derivatives and most of them are related to interest rates.  The spiking of interest rates in the United States may set that off.  What is going to happen in the world is eventually we are going to come to a moment where there is going to be massive bankruptcies around the globe.

What is going to be left after the dust settles is gold, and some people are going to have it and some people are not.  Then the problem is going to be to hold on to what you’ve got because it’s not going to be a very pleasant world.”

Read the full article originally posted here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/8/2_Billionaire_Hugo_Salinas_Price_-_Elites_Plan_to_Control_the_World.html

http://www.mineweb.com/mineweb/content/en/mineweb-silver-news?oid=256613&sn=Detail

January 27-28 (Tuesday-Wednesday) 2015 are the next days of the Federal Reserve’s meeting to discuss interest rates.  This is known as the Federal Open Market Committee Fed Meetings or FOMC.

People are asking me is buying silver a good investment?  Even though I am not a financial adviser, I think it is.  By the way, most financial advisers will tell you not to buy it because they don’t get a commission if you do buy it.  They want those commissions so they will tell you to buy Walmart or Microsoft etc, not me, I want something physical.  What good is Walmart stock if electricity fails, or if the banks and ATM’s are shutdown?  I’ve already planned on what to do.

Historical Prices Related to the Silver Gold Ratio

In the chart I just produced you will see my notes regarding key years for buying and selling gold and silver.  If the ratio is around 50-55 it is considered normal by most people.  Of course, as I have discussed, since silver is being mined at a ratio of just 9, the real upside for silver is huge.

Final Thoughts on the Gold Silver Ratio and Current Prices

The prices of gold and silver are insanely cheap right now.  With the current crisis in derivatives, you have to wonder just how long our economy is going to sustain itself.  I agree with many analysts that we need to have a more stable banking system.  My interview with Willem Middelkoop.

http://www.investopedia.com/articles/trading/09/gold-silver-ration.asp

Amazon link I referenced in the video is here http://astore.amazon.com/globalcurrencyreset-20

This article explains the amount of silver in the ground is just nine ounces per one ounce of gold.  http://www.resourceinvestor.com/2013/05/29/revisiting-the-gold-to-silver-ratio

If you want to know how to buy gold and silver you can visit that page and select BOOKS and just browse through them.

I hope you enjoyed my article on the gold silver price ratio, please comment below, thank you.

Nick Giammarino on Google+

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