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Silver Bullion - The Gold/Silver Ratio
(GSR)
The Gold/Silver Ratio (GSR or simply the gold/silver ratio),
also known as the gold/silver price ratio, is another factor that one should consider before investing in or
owning silver. This ratio is simply a comparison of gold and silver spot prices (as quoted in the news media). It’s
normally given in the format g:s where g is equal to 1 troy ounce of gold and s equal to
the amount of silver in troy ounces that’s needed to buy 1 troy ounce of gold (s = gold price ÷
silver price).
Gold Silver Ratio History Charts
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The silver investor, or potential silver investor,
should consider the gold/silver ratio with the primary aim to establish whether
silver is more expensive or cheaper relative to gold in terms of market trends and perceptions. The lower the
gold/silver ratio the more expensive silver is relative to gold and vice versa. The silver investor should also
be interested in making comparisons between present/current gold/silver ratios and historical gold/silver
ratios. E.g. the average gold/silver ratio had been more or less 1:15 over the past 5000 years and more or less
1:47 during the previous century (20th century). Now the discerning eye can immediately see that there was a
substantial increase in the gold/silver ratio above its historic average of 1:15. This is especially true if one
considers that the average gold/silver ratio was 60.8 in 2005, 66.3 in 2009 and 60.7 in 2010. At the time this
was written, the gold/silver ration was at more or less 1:47. The main reason for this is the fact that they
managed to successfully deploy the “paper gimmick” in the U.S.A. This meant the end
of the silver standard and the
role of silver used as legal tender in the U.S.A. for that matter. They managed to pull it off by means of
various dirty tactics, especially by means of silver market manipulation which
depressed the silver price. This gave people the false impression
that silver has no or little value while nothing could be further from the truth. In fact, we’re still
experiencing rampant silver market manipulation today and the majority of people still have no idea of silver’s
true worth, but it is a status quo that cannot last forever. This is why the gold/silver ratio is at such ridiculous
high levels relative to its historic averages.
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metals today! Contact us for
details.
Invest in precious
metals today! Contact us for
details.
Yes, silver is money and will be used as money again at
some stage or another. History has proven beyond a reasonable doubt that all fiat currencies will ultimately fail.
It’s not a question of if, but rather when fiat currencies such as the USD,
EUR, GBP, ZAR and others will fail? Silver
Bullion is of the opinion that it will be sooner rather than later, especially considering the
rampant “quantitative easing” (or money printing for that matter!) that has been going on in the U.S.A. and
elsewhere in the world for a while now. We believe that when the U.S. Dollar crashes it will take a whole lot of
other fiat currencies with it in the process. The reason being is not only because of the U.S. Dollar’s
influence in the world, but because people will start to realize that fiat money or fiat currencies offer no or
little protection against political and economic turmoil. They will rush to get their hands on gold and
silver, but for most it will be too late. This
is why it’s of critical importance that you grasp the importance of investing in or owning silver, physical silver that is, before it’s too
late.
Gold Silver
Ratio History Charts
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