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What is the Historical Gold to Silver ratio??

PostPosted: Tue Apr 26, 2011 2:06 pm
by searching4silver
So I was reading alot of stuff about silver was over priced, but then I looked up the gold to silver ratio from the 1790's and 1800's. The ratio then was about 16 to 1. By that ratio silver should be about $90 per ounce.

However, I always thought the ratio of gold to silver was 30 to 1 which would put the $46 per ounce price at the correct mark.

Any idea of what ratio to use to get a feel for if silver is over/under priced?

Re: What is the Historical Gold to Silver ratio??

PostPosted: Tue Apr 26, 2011 2:38 pm
by Lemon Thrower
most of human history until the last 175 years it was 17-1 or less, often much less like 12.

google franklin sanders gold to silver ratio for some intersting articles.

eric sprott's letter which came out a week or so ago argues persuasively that we'll go below 10 this time. it was on zerohedge.

we broke through 30-year resistance at 38.2 about 3 weeks ago.

Re: What is the Historical Gold to Silver ratio??

PostPosted: Tue Apr 26, 2011 3:06 pm
by whatsnext
But if gold starts to move it will be harder for silver to close the ratio.

Re: What is the Historical Gold to Silver ratio??

PostPosted: Tue Apr 26, 2011 3:24 pm
by shinnosuke
Gold has been moving; silver just moves quicker...at least recently. The question many of us here have is which of the two metals is subject to the greater manipulation, and if the hand of manipulation is broken what will happen to pricing?