I keep reading about a 16:1 ratio of Gold to Silver on this planet.
The ratio hasn’t dropped much below 50:1 for generations.
Not that there might no be more room for silver to climb more than gold. But if I were looking to buy some of both, I’d buy more gold when the ratio is below 50, and more silver when it’s above.
I’ve seen you post that same thing over and over.
Under the Coinage Act of 1792, here’s the deal:
A gold eagle (ten dollars) contains 16 gr of pure gold.
That makes one dollar the equivalent of 1.6 gr pure gold.
A dollar contains 24.1 gr of pure silver
Therefore, 24.1 gr of silver is the equivalent of 1.6 gr of gold
24.1 divided by 1.6 gives a ratio of 15.06 to one
Which is close to their relative rarity in the Earths crust.
First, some refinement of terms.
Beelzebubba wrote:
I keep reading about a 16:1 ratio of Gold to Silver on this planet.
Those are really horse-and-buggy, even sailing ship numbers.
The ratio hasn’t dropped much below 50:1 for generations.
mikelets456's ratio, 16:1 is correct for what comes out of the ground. For every ounce of gold that is mined and processed between 16 an 17 ounces of silver are mined and processed. That ratio is fairly steady and doesn't change much.
Your 50:1 ratio is the price ratio, not the scarcity ratio or weight processed ratio.
The price ratio has been quite volatile over time. During the big precious metals peak in 1980, there was a point where the gold:silver price ratio was about 15:1. In the past 10 years, it's been as high as about 80:1 at times, and as low as 50:1. It's a bit under 50:1 today.
Also, historically over the last 40 years or so, that price ratio tightens when prices rise. Generally, when prices go up, silver goes up more. There are some exceptions, and some of the price movements aren't quite synchronized. In the current run up, silver has seemed to lag behind gold rather than rising at the same time.