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  • Silver Trailing the Rise in Gold [View article]
    Back in the history of "Bi-Metalism" in U.S. specie (coinage - the only money form permitted to Congress by the Constitution), a Silver-Gold ratio was established, without looking it up, I think it was 16 to 1.

    There is a natural ratio of "rarity" or availablity of the metals, silver (often a by-product) being less rare than gold (and easier to refine in most instances). However, if one were to envisage a "swap" market where gold was traded for silver, the ratio of once to onces would probably show a regression to a mean approximating the natural ratio.

    The "psychological" element of gold prices is somewhat greater than that of silver, whilst the commodity uses of silver are greater. Numerous reasons can be given or contrived for the relative effects.
    Once the "psychological" factors subside, the two metals do seem to hold an observable ratio in terms of relative prices of currencies in the various economic perimeters.
    Feb 27 09:43 am |Rating: 0 0
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