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.
During the big precious metals peak in 1980, there was a point where the gold:silver price ratio was about 15:1
I invite you to make a prediction something like mine:
Gold will rise to a peak of about $4000 in the next five years, and settle to about $2500.
The gold:silver ratio will not drop below 20, nor spend much time below 30.
I have my eye on platinum. When gold equals platinum, it’s time to trade some gold for platinum, because platinum rarely drops that low (it just barely did in late 2008).
Historic, note last 25 years:
http://www.sharelynx.com/charts/AuPL.gif
Recent:
http://stockcharts.com/h-sc/ui?s=$GOLD:$PLAT&p=W&b=5&g=0&id=p27873949797
