The Silver To Gold Ratio

Questions? Speak to a specialist at (800) 781-5308. 2 THE SILVER TO GOLD RATIO If only there was a formula for successful investing. One that was time-tested, profitable and easy to follow. Well I think I found it. It’s the AGAU Formula. In the Periodic Table of Elements, AG is the symbol for silver. AU is the symbol for gold. What I speak of is the Silver to Gold ratio. Simply, it’s a measure of the value of silver as compared to gold. When Silver Became Money In 1792 our Federal Monetary System was created. The “Original Coinage Act of 1792” was passed in order that a common monetary system could be created for the new United States. Prior to doing so, money used in commerce was based largely on the British system of pounds, shillings and pence. Use of a variety of other foreign coins, made of both gold and silver, found no favor amongst merchants and citizens alike as it was cumbersome to calculate and convert relative values of each in their daily transactions. Hence, the Act called for a new standard form of money and the minting of gold and silver coins. Taking into consideration the weights of the variety of foreign coins in circulation, Alexander Hamilton, then Secretary of the Treasury, made recommendations for coins of specific weights, content and purity. In studying the values set for foreign coinage, Hamilton observed that gold carried 15 times more value per the same unit of measure as did silver. Since Biblical times, this ratio had been set based on the supply given us by Mother Earth. In short, silver in the Earth was deemed 15 times more plentiful than gold. So it was in the Act, 1 ounce of gold would be worth 15 ounces of silver. The silver to gold ratio was set at 15:1. By David M. Engstrom Precious Metals Expert & Author Alexander Hamilton set the 15:1 ratio of the price of gold to silver, when the Federal Monetary System was created in 1792. Back then, all money was backed by physical metals. Not so today.