Silver & Gold

What's the "historical" ratio of silver to gold?----Going by this criteria---silver should be ??? (how much) per oz??? (todays prices)

$217.70

Del;. The traditional ratio was 16:1, at that ratio the price of silver should be around $85.00, I think.

Concur. It 'SHOULD' be around 15:1 or 16:1
BUT.......the markets/world have entered into a tangential field of the 'unknown'. Territory that has never been encroached. Paradigm shifts. Distorted and convoluted. What 'should' be of "value" vs what IS of "value". Different mindset. Different culture.

So........to pick TODAY'S ratio.....is difficult; YET, there is certainty .. it is still imbalanced.

Yet, I speculate silver/gold will always retain 'asset' value. . . . . and on a world-wide (recognized) basis.

The experts are saying that the amount of silver and gold above ground supplies are close to 1 to 1. Gold tends to get recycled, where as alot of silver gets used up...... in electronics, in clothing, medicine, solar applications.... At some point the demand over supply is going to cause the price to explode up ward big time. It took Sprott Asset Management months to locate/ buy a million ounces of silver for their silver fund, last fall.
Thats 31.25 tons , a little more than a large semi truck load. I believe silver will be the investment of this decade.

IRT the ratio value of silver to gold.........I concur again.

Just take the price of an ounce of gold, and divide it by the price of an ounce of silver: you have your ratio. Actually, there is no ratio. The price of silver is much more volitile than the price of gold, so it varies by quite a lot, week to week, month to month. If you do a spreadsheet analysis, you will see that sometimes gold looks over priced when compared to the price of silver, and vice versa.

Kevin Wrote:
-------------------------------------------------------
> Just take the price of an ounce of gold, and
> divide it by the price of an ounce of silver: you
> have your ratio. Actually, there is no ratio. The
> price of silver is much more volitile than the
> price of gold, so it varies by quite a lot, week
> to week, month to month. If you do a spreadsheet
> analysis, you will see that sometimes gold looks
> over priced when compared to the price of silver,
> and vice versa.

He was asking about the HISTORIC ratio of silver to gold, It WAS 16: 1.

Hi AUDuke. OK, the HISTORIC ratio. Going how far back? Or between what two dates?

Kevin Wrote:
-------------------------------------------------------
> Hi AUDuke. OK, the HISTORIC ratio. Going how far
> back? Or between what two dates?


For centuries the accepted ratio for silver to gold was16:1. The U.S. had a long established policy of bimedallism, which used both silver and gold at a fixed ratio of 16:1 for pegging the value of the dollar. I think that when the US went off the gold standard the metal ratios were free to change. When silver and gold are used for money there has to be a established ratio between the them.

Can't find a similar chart for silver.

Average
Price Year
1833-49...18.93...1901...18.98...1953...34.84...2005...444.74
1850...18.93...1902...18.97...1954...35.04...2006...603.46
1851...18.93...1903...18.95...1955...35.03...2007...695.39
1852...18.93...1904...18.96...1956...34.99...2008...871.96
1853...18.93...1905...18.92...1957...34.95...2009...972.35
1854...18.93...1906...18.90...1958...35.10...2010...1,224.53...
1855...18.93...1907...18.94...1959...35.10
1856...18.93...1908...18.95...1960...35.27
1857...18.93...1909...18.96...1961...35.25
1858...18.93...1910...18.92...1962...35.23
1859...18.93...1911...18.92...1963...35.09
1860...18.93...1912...18.93...1964...35.10
1861...18.93...1913...18.92...1965...35.12
1862...18.93...1914...18.99...1966...35.13
1863...18.93...1915...18.99...1967...34.95
1864...18.93...1916...18.99...1968...39.31
1865...18.93...1917...18.99...1969...41.28
1866...18.93...1918...18.99...1970...36.02
1867...18.93...1919...19.95...1971...40.62
1868...18.93...1920...20.68...1972...58.42
1869...18.93...1921...20.58...1973...97.39
1870...18.93...1922...20.66...1974...154.00
1871...18.93...1923...21.32...1975...160.86
1872...18.94...1924...20.69...1976...124.74
1873...18.94...1925...20.64...1977...147.84
1874...18.94...1926...20.63...1978...193.40
1875...18.94...1927...20.64...1979...306.00
1876...18.94...1928...20.66...1980...615.00
1877...18.94...1929...20.63...1981...460.00
1878...18.94...1930...20.65...1982...376.00
1879...18.94...1931...17.06...1983...424.00
1880...18.94...1932...20.69...1984...361.00
1881...18.94...1933...26.33...1985...317.00
1882...18.94...1934...34.69...1986...368.00
1883...18.94...1935...34.84...1987...447.00
1884...18.94...1936...34.87...1988...437.00
1885...18.94...1937...34.79...1989...381.00
1886...18.94...1938...34.85...1990...383.51
1887...18.94...1939...34.42...1991...362.11
1888...18.94...1940...33.85...1992...343.82
1889...18.93...1941...33.85...1993...359.77
1890...18.94...1942...33.85...1994...384.00
1891...18.96...1943...33.85...1995**...383.79
1892...18.96...1944...33.85...1996...387.81
1893...18.96...1945...34.71...1997...331.02
1894...18.94...1946...34.71...1998...294.24
1895...18.93...1947...34.71...1999...278.98
1896...18.98...1948...34.71...2000...279.11
1897...18.98...1949...31.69...2001...271.04
1898...18.98...1950...34.72...2002...309.73
1899...18.94...1951...34.72...2003...363.38
1900...18.96...1952...34.60...2004...409.72
**Prices from 1995-2008, Kitco.com, based on the London PM fix.
HISTORICAL GOLD PRICES- 1833 to Present
*Prices from 1883-1994, World Gold Council. Taken from Timothy Green's Historical Gold Price Table , London prices converted to U.S.
Dollars.

Perhaps another forum member can rustle up the comparable silver price chart



Edited 1 time(s). Last edit at 03/16/2011 03:32AM by TerraDigger.

Very interesting gold chart TerraDigger--thanks for posting it.-----From 2007 (to date), gold has a little more than doubled in value.---Where do we go from here???------I DO know one thing---I wished I wouldn't have sold last summer! (groan)-----Watch what I do and do just the opposite!------Yes, it would be interesting to see a silver chart also.--------Del

Over the last 100 years, bull market cycles last about 17 years. We are in the 11th year of this commodity bull market cycle. If the present repeats the past, gold, silver, oil, food prices will hit a peak in 2017.
Thats 6 more years of rising prices. Not a comforting thought for those folks just eaking by now on a tight budget. If you are an investor in the above commodities, a big payoff is coming in 5-6 years.
Remember 11 years ago, when everyone was buying tech stocks? The last year of a bull market , the prices go almost straight up. Why? Joe Average finally figures out its a bull market. Millions of folks pour into the sector, driving the prices to insane levels, and then get caught holding the bag, when there are no more buyers. When to sell is the key.

isn't the price of gold tied into the value of the dollar, so as the price of gold goes up , the dollar goes down, making the gold worth less for the purchasing power,so it really better to dig gold than to buy gold, or did I funk economic next year

Hi Caretaker. I dont follow you, ".....so as the price of gold goes up, the dollar goes down, making gold worth less for the purchasing power...." If the price of gold has gone up, as you say, then it will fetch more funny money, right? More funny money means more buying power, right? Gold is the absolute best hedge against inflatioin, as it will always preserve your buying power. (even if the price of gold has dropped, and not gone up. Yes, of course it is better to dig your gold than buy it, especially if there is plenty of gold to be had. But you can sell your gold at any time. Doesnt matter what the price of gold is, or if gold has gone down or up. Personally, I think it is better to hold on to as much gold as possible for as long as possible. If I need some cash, I can sell some at any time with no real profit or loss. (Common sense should tell you that trading gold for funny money anytime is not a profitable move.) Oh btw, I would think of " as the price of gold goes up, the dollar goes down...) in reverse terms. When the dollar goes down, the price of gold goes up. This is more in accordance with what actually happens.

In 1959 you could buy appox. 140 gal of gasoline for a ounce of gold today you can buy aqppox 400 gal.

In 1959 cars cost $4,000. Today they cost $16,000.

Kevin Wrote:
-------------------------------------------------------
> In 1959 cars cost $4,000. Today they cost $16,000.

BRING BACK THE NICKEL CANDY BARS!!!!!!!!!!!!!