Gold Silver Ratio and the U.S. Dollar

31 Jan

Gold Silver Ratio is a key indicator of a market that has been used by savvy traders to keep the price of silver low. Now with the short squeeze on silver ETF shares, and enactment of new regulations introduced in the Basel III agreements, (come into effect March 2021) the free market price discovery begins. The new rules will require a provable 1:1 ratio of fully allocated gold reserves. Gold would not only act as a cash asset, but would also cause central banks to revalue the dollar price of gold.

Gold-Silver Ratio History The gold-silver ratio has fluctuated in modern times and never remains the same. That’s mainly due to the fact that the prices of these precious metals experience wild swings on a regular, daily basis. But before the 20th century, governments set the ratio as part of their monetary stability policies. For hundreds of years prior to that time, the ratio, often set by governments for purposes of monetary stability, was fairly steady, ranging between 12:1 and 15:1.


The Roman Empire officially set the ratio at 12:1, and the U.S. government fixed the ratio at 15:1 with the Coinage Act of 1792. During the 19th Century, the United States was one of many countries that adopted a bi-metallic standard monetary systems, where the value of a country’s monetary unit was established by the mint ratio. But the era of the fixed ratio ended in the 20th century as nations moved away from the bi-metallic currency standard and, eventually, off the gold standard entirely. Since then, the prices of gold and silver trade independently of one another in the free market.

see: Trading the Gold-Silver Ratio

Gold standard is a must to rebalance and bring back order. Currently there is chaos, the blind leading the blind. The Fed is warping policy because no one understands it and because they are so entrenched in the psyche that very few people can comprehend it – it is purposefully confusing but they can use their own research and “expertise” because they own the hens, the fox and the house. And they own the person’s farm it’s on too.

In 1913 the U.S. Federal Government made it legal for a private corporation to have the ability to print the money that we use. We The People lost that power over 100 years ago, and very few truly understand the powers that are at play, and how they will stop at nothing to continue to keep this game at hand going.

Here is an example of Gold value over time:

1913 average income $633 Gold price per ounce $20.67/oz One years income buys you 30.6 oz of gold

1990 average income $20,468 Gold $387/oz One years income buys you 52.9 oz of gold

2016 average income $57,317 Gold $1,250/oz One years income buys you 45.8 oz of gold

The best way is to measure wages relative to gold price per oz. There was a 73% increase in real wages over a 75 year period. However since 1990 you could argue that quality of life based on what one years income can buy you in gold has decreased in gold terms by 13.5% from 1990 to 2016.

There was a slow and steady increase in purchasing power each year because of improvements in technology, which is how more of your annual income could buy gold in 1990 versus 1913.

Gold provides the ultimate price stability – not the Federal Reserve. The Fed provides the illusion of a steady increase in pay but in all reality the increase in the money supply acts as inflation, which is really the decrease in buying power over time. The Fed is the gate and acts as “Mafia Protection” whereas gold is the Protectorate. It does not discriminate. The fact is vast majority of Americans have not seen a real wage increase in over 30 years except for the top 10% who have seen the vast majority of this growth, and especially the top 0.1%. Therefore the bottom 90% literally get robbed every single year by the powers at hand. Gold standard resets the playing field for the masses, around the globe in one fell swoop.

It’s time to be vigilant and BUY GOLD & SILVER.

Gold Silver Image by WikiImages from Pixabay

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