When you think we can not learn from history, but you know you may read about it in the future, why not learn from the past to prepare your future for success rather that the pain of forgetting failure.
If we know in history the gold to silver ratio is 16:1 and we now see that current mining production is 17:1 yet the price is over 70:1 then eventually your suspect to realize that the balance to fair value must take place if we are here @ 70 ounces of Silver to 1 ounce of gold a torpedo to fair value is imminet at current prices US 3/18/2016 from $15.79 Silver Vs Gold $1255.00 Equals just over 79 ounces to purchase just 1 single ounce of gold. fair value with these price @ 16:1 ratio = $78.00 Silver and $1255.00 gold prices @ 2500.00 gold, Silver would be $156.25 measured with the historic 16 to 1 ratio.
GnS Research
“Numbers don’t lie – people do.”
This brings us to the silver market, and some numbers that illustrate some unequivocal truths. There are few better sources for numbers on silver than precious metals icon, Eric Sprott. In a recent interview with The Daily Coin , Sprott provided a few interesting numbers.
Silver is mined at an 11:1 ratio to gold. This is raw data. This becomes significant when we look more raw data numbers: the natural occurrence of these two metals in the Earth’s crust. Silver is approximately 17 times as plentiful as gold. Therefore, all things being equal, we should expect silver to be mined at a near-identical ratio of 17:1.
Instead, silver is under-produced by roughly 50%. How? Why?
We know it could not possibly be due to lack of interest or demand. Historically, over a span of thousands of years, the price ratio between silver and gold was a very steady 15:1. This means that (over thousands of years) humanity has exhibited a slight price preference for silver. It occurs at a 17:1 ratio, but people have been willing to pay for it at a slightly higher 15:1 ratio.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.