http://seekingalpha.com/article/14922-is-the-old-gold-silver-ratio-of-16-still-alive-today
The link is the best article I’ve ever read on gold/sliver ratio. There’s much more to it than price.
Having said that, gold/silver “price” ratio is now about 60 (you can buy approx 60 ounces of silver for the price of one ounce of gold).
Over thousands of years, gold and silver have maintained a price ratio of around 15 to one. So, silver could be considered extraordinarily under-priced today. Or, gold could be correspondingly overpriced.
But, many people are betting that silver is the under-priced commodity. Fact is, at a 60 to one ratio, some-thing’s way out of whack. And, when gold and silver decide to normalize, some serious money could be made by those who guess right.
I have been betting on silver appreciation for about 10-years. And, appreciate it has. But, if I’m right, the fun is just beginning.
Good luck to all.
There is a more important factor to throw in the mix. Inflation
The supply of gold is pretty much fixed. If there is a reversion to a gold standard, the supply is fixed and the demand will be great. That means the price of gold will rise until all the various currencies and vault stores stabilize around the total supply. To trade on the world market, gold will be required again.
Some will have oil and gold, others will have silver and perhaps gold. Some will have neither.
With the coming inflation the price of all three will rise until it all settles out at some presently unknown level. The process is not a bubble, but the inexorable change between events, nations and precious commodities.
There is some serious talk by people who study it that say there is in fact more available gold above ground now than there is silver.
Estimates of worldwide gold amount to 6-8 billion ounces.
Recent estimates of available silver are usually in the 4-5 billion ounce range.
A standard bag of junk sliver (1000USD) is about the size of a large football and weighs about 47 Lbs.
If you plan to buy and store silver, make sure you have the space...