Gold/Silver Ratio: Silver Going Higher?
A topic we covered extensively in the past makes a second appearance, this time courtesy of Abigail Doolittle and The Weekly Peak, whose weekly musings focus on the much fabled ratio between the price of gold and silver. Some observations:
- 323 B.C. – The ratio stood at 12.5 upon the death of Alexander the Great.
- Roman Empire – The ratio was set at 12.
- 12th to 17th Century – The ratio was around 12.
- End of 19th Century – The nearly universal, fixed ratio of 15 came to a close with the end of the bi-metallism era and England’s attempt to demonetize silver and conceivably because the country had little of the precious metal.
- 1980 – At the time of the last great surge in gold and silver, the ratio stood at 17.
- 1991 – When silver hit its lows, the ratio peaked at 100.
- 2003 - 2007 – This part of the bull market in silver caused the ratio to drop to 45 from 80.
- 2008 – The ratio rose back to 80 on the Great Recession.
Much more in the full report below.
Gold/Silver Ratio: Silver Going Higher? (pdf)