{"id":13838257690,"date":"2012-01-16T16:17:23","date_gmt":"2012-01-16T16:17:23","guid":{"rendered":"http:\/\/lonestarbullion.com\/blog\/?p=13838257690"},"modified":"2018-03-15T04:49:42","modified_gmt":"2018-03-15T04:49:42","slug":"why-invest-in-silver-reason-2-the-gold-to-silver-ratio","status":"publish","type":"post","link":"http:\/\/lonestarbullion.com\/blog\/2012\/01\/why-invest-in-silver-reason-2-the-gold-to-silver-ratio\/","title":{"rendered":"“Why Invest in Silver?” Reason #2: The Gold to Silver Ratio"},"content":{"rendered":"

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Many new silver investors have hear of the gold and silver ratio, but do not understand its significance.\u00a0 Consequentially, Many investors ask, \u201cHow could the gold to silver ratio affect the future return on gold and silver?\u201d<\/p>\n

\u00a0The History of the Gold to Silver Ratio<\/span><\/strong><\/h3>\n

To truly understand the economics behind the gold to silver ratio, we have to understand the history.\u00a0 There have been periods such as with ancient Egypt where the gold to silver ratio was 1 to 1.\u00a0 At other time like during the Ming dynasty, the gold to silver ratio was 4 to 1.\u00a0 However, when the gold to silver ratio is examined over multiple centuries the average is 12 to 1.\u00a0 These ratios are not simply a mystical number, but rather are a reflection of the law of supply and demand.\u00a0 When we examine the silver both in above ground and under ground supplies, we find that there is approximately 10 ounces of silver to every 1 ounce of gold.<\/p>\n

\u00a0The Impact of the Gold to Silver Ratio<\/span><\/strong><\/h3>\n

The first time that the gold to silver ratio seriously deviated from the norm in US History was in 1933 when Roosevelt confiscated gold and artificially raised the price of gold by 40%.\u00a0 After a decade or so the ratio returned back to normal, but in 1973 when the United States went of the gold standard the gold to silver ratio went crazy.\u00a0 Before 1973, it took roughly 16 ounces of silver to purchase 1 ounce of gold, or a 16 to 1 ratio. Due to extreme manipulation of silver prices, the gold to silver ratio skyrocketed until it peaked at 100 to 1 in 1990.\u00a0 While the ratio has begun to consolidate back to its historical norm, the ratio today ranges between 55 and 65 to 1.\u00a0 With gold at $1620 an ounce, silver would be at $135 an ounce if silver were to correct back to its historical ratio!<\/p>\n","protected":false},"excerpt":{"rendered":"

Many new silver investors have hear of the gold and silver ratio, but do not understand its significance.\u00a0 Consequentially, Many investors ask, \u201cHow could the gold to silver ratio affect the future return on gold and silver?\u201d \u00a0The History of … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[105,117,9,106],"tags":[103,104,3,217,216,4,102,101,110],"class_list":["post-13838257690","post","type-post","status-publish","format-standard","hentry","category-invest-in-silver","category-investing-questions-and-answers","category-precious-metals","category-ways-to-invest-in-gold","tag-12-to-1-gold-to-silver-ratio","tag-16-to-1-silver-to-gold-ratio","tag-gold","tag-invest-in-silver","tag-precious-metals","tag-silver","tag-silver-to-gold-ratio","tag-the-gold-to-silver-ratio","tag-ways-to-invest-in-gold-2"],"_links":{"self":[{"href":"http:\/\/lonestarbullion.com\/blog\/wp-json\/wp\/v2\/posts\/13838257690","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lonestarbullion.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lonestarbullion.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lonestarbullion.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"http:\/\/lonestarbullion.com\/blog\/wp-json\/wp\/v2\/comments?post=13838257690"}],"version-history":[{"count":8,"href":"http:\/\/lonestarbullion.com\/blog\/wp-json\/wp\/v2\/posts\/13838257690\/revisions"}],"predecessor-version":[{"id":13838257694,"href":"http:\/\/lonestarbullion.com\/blog\/wp-json\/wp\/v2\/posts\/13838257690\/revisions\/13838257694"}],"wp:attachment":[{"href":"http:\/\/lonestarbullion.com\/blog\/wp-json\/wp\/v2\/media?parent=13838257690"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lonestarbullion.com\/blog\/wp-json\/wp\/v2\/categories?post=13838257690"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lonestarbullion.com\/blog\/wp-json\/wp\/v2\/tags?post=13838257690"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}