The Silver To Gold Ratio

The Silver To Gold Ratio

I stack silver because of the silver to gold ratio. Maybe you know about it, or maybe you do not know about it. Before we jump in let’s look at some historical precedence of the ratio.

What Is This Ratio?

The gold-silver ratio is the oldest continuously tracked exchange rate in history. This ratio has been around even before the Romans established theirs at 12:1. The times in history that the ratio has tampered have always resulted in disaster. Disaster can be a slow event but the results are always the same eventually. Governments throughout history have always messed with the ratio through fiat currency or precious metal content in coins. The result has always been not so good for the average person. There is no escaping history!

The silver to gold ratio dates back long before any real recorded history. Essentially it is based on the financial fact that gold is for the wealthy and silver is for the masses. Gold is merely the larger denomination of ‘currency’ and silver is the change, or coins when used in transactions. It would not be feasible to buy a loaf of bread with gold while silver is much more practical.

Let’s look at this ratio if the price of gold is $1,000 an ounce and the price of silver is $20 an ounce, then the gold-silver ratio is 50:1. The silver to gold ratio is merely the value of an ounce of gold divided by the price of an ounce of silver. The historical ‘rule‘ has always been somewhere between 15:1 or 16:1. As of the writing of this article, the ratio is currently at 75:1.

U.S. Constitutional Silver?

I have not met one person who knows that the United States Constitution specifies a gold to silver ratio. The Coinage Act of 1792 states directly laws that have been brushed aside over the years. The early members of Congress knew how important the integrity of our monetary system would be. In fact, the Constitution does not allow Congress to print currency. The only mention was to mint coin. The early Americans knew from personal history how dangerous it was for a government to print currency. This is why it was it was written into law that only the federal government could “coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures.” The Congressional legislation made the dollar the basic unit of money and adopted the bimetallic standard, meaning that both gold and silver became legal tender (an official medium of payment) in the United States. Laws fixed the value of each metal in relation to the other. Back in the day if a person held a $10.00 gold coin it had approximately the value of $10.00 of gold content.

Today a person would be a fool to spend a U.S. gold coin at a store. Today the face value of a $10.00 gold coin is worth many times less than the gold value. Essentially today’s U.S. coinage is just pieces of worthless metal. The coins in a person’s pocket today are only worth something because the person believes it to hold some value. It is a con game that is reflected in the ratio.

A Lowly Mercury Dime

Above you see the price to order $5.00 face value in U.S. mercury dimes. You will pay about $2.30 for EACH dime. The value of the dime has not increased for any other reason than the dollar has eroded to virtual worthlessness. Yet the silver to gold ratio remains at a staggeringly consistent 70:1+.

Why Care About The Silver To Gold Ratio?

I will not even touch on how The Federal Reserve is involved because at this point they ARE the problem. The problem is now too big and nothing can stop what is coming. Many times in history things changed rapidly when this ratio was manipulated too long. Looking through the prism of history I know that I need to stack as much silver as I can. When the reset comes I will not only be able to survive… I will be able to thrive.

Do your research…