The Silver Sale Not To Be Missed

The Silver-gold ratio is currently at 85 : 1. This simply means that the price of silver is so low we can call this a silver bonanza sale. This is the perfect time to buy as much silver bullion coins as you can.

To understand how we got to this point we need to discuss what this silver-gold ratio is and why you should be excited when it hits 85:1.


What is The Silver-gold Ratio?


The simple explanation of what the silver: gold ratio is that it’s the amount of silver it would take to buy an ounce of gold.


The gold: silver price ratio was first fixed in the United states in 1792 at 15 to 1. In 1803, France fixed their ration at 15.5 to 1. To deal with the challenges of bimetallic monetary systems and the fixing of the exchange rates, the US congress passed the coinage act of 1873. The US was catching up with what other Western countries like England, Germany and Portugal were doing by taking steps to demonetize silver in favour of establishing a gold standard.


Silver played a smaller role in the monetary system as the silver-gold ratio spread. The ratio has stayed around 40 to 1 in the last century.


The price of silver fluctuates a lot compared to gold mainly because of the industrial applications of the metal. However, silver is still very much a monetary metal and it consistently tracks with gold. When the price of gold goes up and always takes the price of gold with it. When the dollar weakens and inflations rears its head the price of both gold and silver will go up.


Silver has been having a good run recently. The dynamics of supply and demand Alps look good for silver right now. According to a report by the Silver Institute, the demand for silver rose to a three-year high in 018. Silver mine productions are expected to remain low this year. Fresnillo plc, the world’s largest producer of silver and Mexico’s second biggest gold mining company has reported a reduction in output in the first quarter of 2019.


Analysts project that the industrial demand for silver will increase. The use of silver in solar photovoltaic energy products will continue to increase globally, according to the Silver Institute. This industry alone is expected to use roughly 820 million ounces of silver from now to the year 2030. Studies show a causal relationship between the demand for solar energy and the price of silver.


The first all-time high price of silver came in January 1980 when the price got to $49.00/oz. and the second all time high was in April 2011. When you adjust the $49 to make up for inflation, the price goes up to about $150/oz. This means that its current valuation has a long way to run up which makes it a great metal to keep for the long run.



Fresnillo’s 2018 silver output hit record high, to be lower this year

Gold to Silver Ratio