The gold silver ratio explained

Today we are going to return to one of the old chestnuts of the precious
metal investing world and explain the relationship between the two key
metals gold and silver. Specifically we will give the answer to the
question of what is the Gold Silver Ratio meaning?

As well you know, gold and silver have been used for the last five
thousand years odd as “real money” and they have always had a tight
relationship. Today in our modern world the central planers have weaned us
onto a paper worthless currency (aka fake, or more technically fiat
currency), while they (I guarantee you) are buying and storing up all the
gold and silver they can find with both arms, and feet.

This relationship is based on their scarcity and how much of it was coming
out of the ground – Obviously if one is much more common (Silver) than
the other (Gold), then it is going to be worth less.

Throughout history this relationship (ratio) has remained fairly constant
at somewhere between twelve to one, and sixteen to one.

So in other words you would need twelve ounces of silver to buy one ounce
of gold. Or Gold was twelve times more valuable than silver. Sometimes you
would need sixteen ounces of Silver to buy one ounce of Gold.

The Gold Silver Ratio Calculation Method

Gold Silver Ratio Calculation

So what is the Gold Silver Ratio today? Well for that we simply do the
simple Gold Silver Ratio Calculation – Divide the current USD price of
Gold, into the current USD price for silver. This gives us 1,350 divided
by 22.6 which gives us a ratio of 59.7. So let’s call it 60! This is today
as of this writing – This will change drastically in the future and I
invite you to revisit this page five years from now!

This means that today we would need 60 ounces of Silver to buy one single
ounce of Gold. That means the ratio is very high, and at some point it
will revert back to the historical mean (as me mentioned above, somewhere
between twelve and sixteen).

See this ten year Gold Silver ratio historical chart here:

Start allocating some of your investing money today in some Silver to
compliment your Gold in your personal Precious Metals holdings – would be a
very smart thing to do. So don’t delay! Start to action that task today!

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