GOLD is the money of the KINGS, SILVER is the money of the GENTLEMEN, BARTER is the money of the PEASANTS, but DEBT is the money of the SLAVES!!!

Sunday, August 21, 2011

The History of Gold Silver Ratio by Jeff Neilson

Jeff Neilson does a really good job explaining the current issues in this market and how to make use of the gold/silver ratio as a means to optimize your precious metals portfolio.

A brief history of the gold:silver ratio:
Notice the dates: fixed for many years, then it floated over 40:1 when silver demonetized
Roaring 20s brought it down to 16:1
Great Depression, ratio went to 100:1, no significant industrial use
After the post WW2 boom, it went way down, industrial use and electronics
Early 1970s, US off gold standard and individuals could own gold - look how it went up
Hunt Brothers event bottoming it out at 9:1
Then it went back up, over 90:1 during the recession of the 1990s
Dot-com boom sent it under 60:1
Panic of 2008 sent it over 80:1 - deflation, less industry use
Recent stimulus sent it to 60:1

Related ETFs : Ishares Silver ETF (SLV), SPDR GOld ETF (GLD) SPDR GOld ETF (GLD), Powershares DB SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), GoldCorp (GG)

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