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Silver to Gold Ratio Historical Timeline, Visually : from 1883 to 2009




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SteveMT's picture

Thanks, Cyril

When will that ratio be 1:1?!

Cool video but...

As a Layman I don't know how to interpret and or use the information in the video. Can anyone explain to me what this silver:gold ratio means to the average buyer/seller, federal reserve note user.

Cyril's picture

Interesting to spot the depressions and war times and correlate

Interesting to spot the depressions and war times (among other influential, political events) and correlate with the ratio's trends, IMO:

Is it not?

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Cyril's picture

Elaborated:

Elaborated:

http://www.providentmetals.com/knowledge-center/gold-to-silv...

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Cyril's picture

If you're more of a chart person, here's a resource

If you're more of a chart person, here's a resource (among many others) to track this ratio:

http://goldprice.org/gold-silver-ratio.html

It's currently flirting with the 60ish (clearly in favor of gold owners, still).

The video I shared makes a good point, IMO, that history seems to tell us that depressions (disguised or not) or war times give the advantage to gold, with a ratio much higher than 12:1 or 16:1 before the 19th century.

While in peace, true recovery and prosperity times, that seems to be the opposite, and the ratio going lower give the advantage back to silver owners.

Gold is the money of kings, silver is the money of gentlemen, barter is the money of peasants – but debt is the money of slaves.

― Norm Franz, in "Money & Wealth in the New Millennium: A Prophetic Guide to the New World Economic Order" http://www.amazon.com/dp/0971086303

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Cyril's picture

Just a ratio

It's very simply the ratio of the amount of silver, say, in ounces, that buys you exactly one ounce of gold (to use the same unit).

Let's say gold is at $1,500 an ounce and silver is at $50 an ounce (spot prices), then:

Gold/Silver Ratio = 1,500 / 50 = 30 / 1

Also written : GSR = 30:1 ("thirty to one")

In other words, at spot prices, you can only hope to exchange not less than 30 ounces of silver for ounce of gold.

The lower the ratio is, the better it is for silver holders to convert a part of their silver into gold (*).

Or, equivalently, of course:

The higher the ratio is, the better it is for gold holders to convert a part of their gold into silver (*).

Makes sense?

Hence, the video, depicting the notion.

'HTH,

(*) if they so wish

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Cyril's picture

LOL :) I'm not picky...

LOL :)

I'm not picky... I'd be ecstatic already if it could only return to 12:1 ...

;)

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius