The Silver To Gold Ratio

Questions? Speak to a specialist at (800) 781-5308. 4 Then in 1859 we experienced another epic shift in the supply of silver to gold, as gold miners in the mountains of Nevada discovered a river of silver deposits. It was called the Comstock Lode. By 1860, with the silver to gold production level having fallen to just 7 ounces of silver to 1 ounce of gold, savvy investors now anticipated rising silver production from the Comstock Lode and a rapid decline in silver’s value. Once again, it would become gold’s turn to be the metal of choice for preserving and storing wealth. Is history repeating itself now—right before our eyes? Which metal’s turn is it to become the metal of choice for those who wish to multiply wealth through accumulation? The AGAU Formula and the Corruption of Money As we now see, the AGAU formula is not a new discovery, it has been followed for decades even hundreds of years. However, the corruption of money causes us to apply a revised formula due to changes in how currency is measured. The monetary system of fair weights and measures, as established in 1792, has long since been debased by the elimination of the gold standard and the printing of paper money. A dollar is no longer defined as a precise amount of gold or silver as they relate in value to each other. Instead, and as ridiculous as it sounds, the value of gold and silver is now subject to the perceived value of a piece of paper (dollar) as measured against the perceived value of other pieces of paper (other currencies) . It is this corruption of money that has caused gold, of recent times, to carry 80 times the value of silver when measured in paper dollars. Something is amiss. As thousands of years of history have taught us, the value of silver to gold should be measured by the relative supply of each. If the supply of silver exceeds the supply of gold, then gold should be the metal of choice for storing wealth. If the supply of gold exceeds the supply of silver then we should be accumulating silver in anticipation of an eventual rebalancing of the supply/ demand scales of value. The value of silver to gold should be measured by the relative supply of each. But since the elimination of the gold standard in 1971, we now have to calculate the value of silver to gold relative to the value of each to the dollar.