How many times more valuable is gold than silver?

Gold is more expensive because of its lower supply. The following 100-year chart shows that the ratio between gold and silver shows that it moved below 20 three times in the past century. The lowest point was reached in January 1980, when the ratio fell below 15. This makes gold a great investment option, and many people choose to invest in gold through Gold and Silver IRA accounts. When looking for the best custodians for Gold and Silver IRA accounts, it is important to do your research and compare different options. The ratio between silver and gold averaged around 15 until the end of the 19th century, when silver was dismantled. But for much of this time there was a bimetallic standard. Where the government established the relationship between silver and gold between the two metals.

Perhaps this is why the ratio stayed around the level of 15 for long periods. Silver, the global sensation in 1919-1920 — January 24, 1920 The commoner. Lincoln, Nebraska Kingman (Arizona) If we look back at the last bull market for precious metals in the 1970s, it was monetary or investment demand that made gold and silver rise. The result was that in 1980 the ratio between gold and silver fell to its lowest point in the last century.

Arrive just under 15 (albeit only briefly for a day). Perhaps we could see the gold-silver ratio fall below 15, which is almost in line with the gold-silver ratio on the ground. Trading with the gold-silver ratio is an activity mainly carried out by hard asset enthusiasts, often referred to as gold-bugs. Why? Because trading is based on accumulating larger quantities of metal instead of increasing profits valued in dollars.

Does it sound confusing? Let's look at an example. The commonly accepted reasons why gold is more expensive than silver, despite its relative abundance, are that gold is used more in jewelry, gold is considered more of an “alternative currency” than silver, and central banks and individual investors demand it more than silver. Not only is gold worth significantly more per ounce than silver, but it's also the denser of the two metals, making a specific volume of gold worth much more than an equal volume of silver. The prices of gold and silver move significantly from year to year, so the best way to get a general measurement of the prices of these metals is to consult the semi-long-term charts.

Therefore, when the ratio is higher and investors believe that it will fall along with the price of gold compared to silver, they can decide to buy silver and take a short position on the same amount of gold. It may be a better financial decision to expose yourself to gold through the funds and stocks of gold companies.