If severe inflation is expected with a concomitant rise in the price of gold, the ratio between the gold price and the silver price will narrow quite a bit. In that scenario silver is a much better investment than gold. Gold is not really an investemnt beyond short term speculation. It holds its value over time, neither rising or falling in value as determined by what a given quantity of gold will purchase in other goods. If you wish to simply hold on to the value of your assets securely (less transaction and storage costs) then one buys gold. If one wants to invest for gain and one expects high inflation then silver is the way to go.
IIRC, the only time in recent history that one could “spend” gold was during the German hyperinflation of the 1920’s. Germans prudent enough to hold gold merely went to Switzerland or Great Britain & exchanged their gold for rock-solid Swiss francs or pounds sterling or maybe even American greenbacks. These foreign currencies were brought back into inflation-ravaged Germany where they were readily accepted in payment, which of course worsened the fiduciary situation.
At least I think that’s how it was. How would gold be used in a barter economy in these times?
IMO it’s good that the prices of silver or gold are well below their previous highs. Could it be due to our expanding oil production & exports (which this preezy has done everything to thwart)?