Historical Gold Silver Ratio Long Term and Now.

Historically speaking, the gold silver ratio has rested somewhere between 15 and 10 to 1, reflecting the average supply of each metal. There were times throughout the history of money where the ratio was even lower — China once had a 4 to 1 ratio and the ancient Egyptians even had a 1 to 1 ratio at one point.

Gold: Silver Ratio. The gold: silver ratio is the proportional relationship between the respective spot prices of gold and silver. Put simply this describes how many ounces of silver can be bought with one ounce of gold. Gold has always been more expensive than silver, however if the.

How to Use the Gold-to-Silver Ratio?. for a while, as the fundamentals may change, justifying a new range for the ratio. History does not repeat itself, it only rhymes.. All essays, research.

Then, throughout the fifties and sixties, silver began to appreciate relative to gold, and by 1970, the silver-to-gold ratio was 23:1. Shortly thereafter, the price of silver went on a roller-coaster ride as the Hunt Brothers cornered the market, and in the aftermath of that episode, the ratio swung wildly in the other direction, reaching 102:1 by 1990.

The gold-to-silver ratio is indeed one of several valuable tools used to determine the optimum time to buy gold or silver bullion. However, it is wise to avoid haste. Only the most experienced investors make profits using a short-term view, and even they suffer errors in judgment.

Gold Prices - 100 Year Historical Chart. Interactive chart of historical data for real (inflation-adjusted) gold prices per ounce back to 1915. The series is deflated using the headline Consumer Price Index (CPI) with the most recent month as the base.

As early as 3100 BC we have evidence of a gold-to-silver value ratio in the code of Menes, the founder of the first Egyptian dynasty. In the Menes code it is stated “one part of gold is equal to two and one half parts of silver in value.” People began mining silver in 3000 BC in modern day Turkey.

The two previous all-time highs for the ratio (and remember, the higher the GSR, the cheaper silver’s price is relative to gold’s) were the 1940 high of 97.3 (which occurred near the beginning of the WWII), and the 1990 high of 100.7 (which was reached as the economic boom of that decade kicked off). The all-time lows ranged from 15 to 17.

Gold, a rare and highly valued material, was buried with the dead so as to accompany its owner into the afterlife. Much archaeological jewellery comes from tombs and hoards. Sometimes, as with the gold collars from Celtic Ireland which have been found folded in half, it appears people may have followed a ritual for the disposal of jewellery.

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In July 2003, the gold to silver ratio was 77-1. In recent years, the ratios varied considerably from approximately 30-1 to 60-1, but now with silver in short supply, increased investment demand, and when you factor in the current economic conditions, many of the experts we interviewed believe that silver will, indeed, out perform gold on it's way back to the classic 16-1 gold to silver ratio.

Even if gold stays flat and silver merely returns to its average ratio with gold, this white metal still has excellent near-term appreciation potential. And of course the best silver producers’ stocks should nicely leverage any silver gains driven by its mean reversion to normalcy with gold.