Dumb question, but what is the is the historical rate of siver to Gold price range.

Julio

I've read it a hundred times but can't recall it. Thanks, Take Care, jws

roadrunner

On the high side it has gotten close to 100 in the past. So even at today's seemingly high ratio of approx 75-80 there is potentially more room to the upside. Historically the ratio was 16:1 for decades when both were fixed.

roadrunner

RedTiger

Here is chart since gold floated free. It is a year out of date, but gives some historical perspective:
http://www.gold-eagle.com/charts/GSR-SM.gif


Since 1985, the range is 50 to 100, with 80 marking a significant peak in the ratio. The 80 might be one reason silver bounced off the lows because, I would imagine that a good many newsletters sounded the trumpets and got their subscribers to buy silver or switch from gold to silver when the ratio hit 80 again. The way I see it, 80 is only minor resistance on the chart, and personally, I wouldn't take that trade.

There are some more charts of interest at that site, though they are also out of date:
http://www.gold-eagle.com/charts/gegsr.html
link

Those that mention 17-to-1 are talking about 100 years ago, circa Bland-Allison act and the minting of Morgan dollars, plus a one week spike on the chart when the Hunt brothers ran silver up in 1979.

coynclecter

15 to 1 has been historic before modern manipulations took place. It was based on the average ratio of gold/silver mine produced. For centuries they knew that it was coming out of the ground at a ratio of 15-1. Of course most of the gold has survived but much the silver has been used up. Some actually say there is more gold above ground than silver right now.

cladking

Silver was more valuable than gold in ancient Egypt. As trade and mining increased this reversed.

Julio

Some really educational material from you all. I learn something here everyday. Thanks. Take Care. jws

Norseman88

<< <i>15 to 1 has been historic before modern manipulations took place. It was based on the average ratio of gold/silver mine produced. For centuries they knew that it was coming out of the ground at a ratio of 15-1. Of course most of the gold has survived but much the silver has been used up. Some actually say there is more gold above ground than silver right now. >>



There are numerous articles reporting that Gold is 2-3 times more abundant than Silver as most Silver is used up and consumed.
Supposedly back in 1980 when Gold and Silver last peaked at $860 and $52 (17:1 ratio) there was twice as much Silver as Gold available.
Something I found interesting was when I asked the local coin dealers about the amount of Gold coming in the past 2-3 months they all said that scrap Gold and bullion were coming in on a regular basis, when I asked them how much Silver was being brought in for sale they all said there was little to no Silver Jewelry or bullion coming in and this was the first time in many years that they were actually running out of 90% Silver coins or bullion for sale so draw your own conclusions.

MoneyLA

Redtiger wrote: "Those that mention 17-to-1 are talking about 100 years ago,"

Well, the year was 1980 and at their peak prices, gold was 850 and silver was 50, and that was a ratio of 17 to 1.

Anything more than that 17 to 1 ratio, to me, indicates that either gold is overpriced or silver is underpriced. You may have a different opinion.

vplite

There is absolutely no actionable information to be gleaned from the price ratio of gold to silver. It is sometimes used as a selling tool by shady outfits.