Loading ...Perspective on the Gold to Silver Ratio
Months ago I posted about switching out of gold and into silver to take advantage of the extended gold to silver ratio above 90. This visual display of the value of metals and oil displays a ratio of gold, which while representing wealth, is barely used for anything industrially, to silver which is, at about 10 to 1. So even with the ratio coming down since March to just below 80, we have a long runway ahead of us on the road to 10-1 or lower. Got Silver? https://www.visualcapitalist.com/wp-content/uploads/2023/06/size-of-crude-oil-market-compared.jpg
I think the gold to silver ratio is irrelevant. There is nothing to say silver has to trade at any ratio to gold. Doesn’t matter how much they occur in the ground. If gold is once again made to be money in the financial system then gold should trade at a premium to silver. If silver is consumed to the point that hardly any exits on the planet then it will probably trade at a premium to gold. Forget trying to price one based on the other.
It is very relevant. You are missing why and what it means. Both have been and still are money and have been for thousands of years. The fact that the ratio has gone from historic levels of say between 7-1 and 15-1 when there wasn’t a derivative based exchange designed to surpress the price of silver to levels as high as 100-1 shows it is an artificial distortion that will end when the manipulation ends. The proof is that silver is already at the level of shortage you described yet hasn’t reached even half of it’s nominal high price from 1980, yet gold which hasn’t been surpressed in the same manner(although does get manipulated in the short term) has continued to reflect the loss of purchasing power over the last 5 decades. I am not trying to price one against the other, I am pointing out the discrepancy (oportunity) created by the ongoing manipulation at the Comex.