Is it better to have 70 OZT of Silver or 1 OZT Gold

in steemsilvergold •  7 years ago 

Gold or silver, which is the better buy right now?
5DD167D4-D9B1-48BF-9179-931B0FF87B6F.jpeg

Let’s talk about ratios. If your at a party and the ratio is 1 to 1 guys to girls, 75255680-752A-4B57-87D9-BACEE1933945.jpegyour pretty happy.

Now say you go to a party and the ratio is 10 to 1 guys to girls..... B7983154-F749-4EAA-BFCF-C42D30DCCFC1.jpegwe call that a sausage fest and those SUCK!!

The gold to silver ratio can be the same way. It can be awesome or it can suck. Precious metals will always be money, and when they are tied into a stable currency they can be a great backing for fiat notes or digits. When silver and gold come out of the ground, according to geological surveys silver is 15 times more abundant then gold.

When the Roman Empire was in control of the world they were on a 12 to 1 ratio of gold to silver. And one weeks of labor was worth a 1/10th of and ounce of silver. 17F54BBF-6EF0-41AF-84DE-325936769915.jpegphoto credit ancient.eu

Ok in 1787 the United States constitution placed congress in control of the money and by 1792 Alexander Hamilton came up with a 15 to 1 gold to silver ratio. Making gold, silver, and copper coins otherwise known as hard money! A0E05E5E-C0CC-4A53-9EAC-1C27E20F7BAA.jpegphoto credit coinquest.com

You can see here the moves up and down of the ratio. Their was some stability when we were on a gold standard. 4B1ADA23-65F8-46A1-B5A1-9B071FD35249.jpeg
And then look at the volatility of the ratio! It looks like a speed junky hooked up to an EKG machine AB698544-AFCE-442C-ABD0-ED750D9AF2CA.jpeg to me it looks like this guy is getting ready to flatline....

When the Hunt brothers tried to short the market in the 1980’s we saw a short time of a 16 to 1 silver to gold ratio. B08EA821-A1B9-4F70-B16A-E69B552A3981.jpegphoto credit globalbullionsuppliers.com

Beginning in the early 1970s, Hunt and his brothers William Herbert and Lamar began accumulating large amounts of silver. And by the end of the 1970’s they had nearly cornered the international market. In the last half of 1979, the Hunt brothers profited by an estimated $4 billion in silver speculation, with an estimated silver holdings of 100 million troy ounces.
I don’t even know if we all pooled our silver together that we would have that much! Lol

The 20th century has given us huge amounts in debt and wide swings in the gold to silver ratio. 33C11418-66BA-4501-8635-49DFF108D551.jpeg
The average price of precious metals was at a 50 to 1 in this crazy century.

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And now we are at about 75 to 1 gold to silver ratio!

I think that when an asset is this undervalued like silver is, and when you think of all the industrial and medical uses of silver. I can see it going to a 20 to 1 or even a 10 to 1 ratio for a short time.
Silver is the most conductive of all the metals and with us moving into a digital world, silver could be the best investment ever!
20 trillion in debt, 40 million Americans on food stamps, manipulated job numbers, the stock market at all time highs in a melt up, and last time this happened was the dotcom bubble. I feel inflation is coming and the best way to protect your family is in precious metals.
Remember you can only hold a beach ball below water for a short time before it explodes up out of the water BFE5E7C1-0D5D-4557-9612-6991573A7218.jpeg

So when the ratio gets back to more of a natural balance and gold and silver skyrocket. 87CD2758-CC66-4EAC-AABC-4FC26AABD316.jpegphoto credit www.ddees.com

Will you be selling your silver for fiat or trading it for gold?
BC38D319-9D82-492F-8CDD-D662A970D14B.jpeg9F271AC5-E2A9-44C0-8198-E107B92D8E62.jpeg

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  ·  7 years ago (edited)

This is a fantastic write up and description of the silver gold ratio. The party example was perfect. The history from Rome to American history is absolutely On Target. I completely agree silver is way under valued. As such, today I recommend buying silver. When the ratio starts to correct, I'll trade the silver for gold.

Wow great minds think alike!! I love silver and enjoy pouring it. But when it’s this undervalued at 75-1 it only makes sense to stack silver! It’s very interesting how history repeats itself.

Definitely a great time to be stacking up the “flip” ounces — cheap generic held in reserve for precisely this event that is sure to come.

I hope it doesn’t happen to soon! I’m enjoying these metals being on sale. And soon the silver will turn into gold.👍🏼🍺🥓

True dat!

  ·  7 years ago (edited)

In the 1930s and earlier, twenty Silver Dollars were equal to one $20 Gold Double Eagle. $20 = $20. Today it is 75 silver dollars to 1 gold. Keep in mind old 90% silver dollars contain .77 troy oz silver. (So do Modern Commemorative Silver Dollars) And Gold Double Eagle contains 0.9675 troy oz gold. Anyway, being 67 years old, I like the idea of getting 70+ silver coins, today, over 20 in the 1960s. In early 1960s Silver Dollars were in circulation, Gold Coins were not. The G:S ratio has been as high as 105:1.

Wow excellent reply good sir!! That was valuable information I should have included into the article. I would love to pick your brain and gain knowledge and information from you about your extensive metals career. Thank you for sharing and stopping bye! 👍🏼🍺🥓

Gold would be easier to carry, if necessary.

And it’s more fun to pour gold!

Gold all the way baby, once that thing it's 40 to 1, I will sell half of my silver and buy gold with it.... excellant post @stackinag47

What Ray said...

Thanks brother! What ever I owe on the house I will pay off if the ratio corrects and what ever I have left over will go to gold. And then when the ratio gets off balance again I will buy silver and convert it the same way!

Silver is better than gold.

Yes silver is my jam!!

I have only been dealing with silver but have been looking at gold recently.
Now that i have learned that its down to a 75/1 im thinking i might just stick with silver.

As for selling silver for fiat, im starting to use silver insted of the bitcoin atm when i need a little spending cash. i end up paying less as crazy as it sounds. Coinme bitcoin atm has over 145% fee. so 45bucks in bitcoin isnt enought to cash out 20 bucks (at the bitcoin atm because they want 145%+ cut) where if i got a silver round i paid 18 bucks for i can cash it in for 16 and have only lost 7%.

Nice post! I will stick with silver until the ratio gets back to a more normal 20-1 then I will trade in some silver for gold. I will give you close to spot if you want to sell your silver. I can PayPal, let me know!

At this point im just selling a round or two here and there but if i end up where im going to get rid of more then just a round or two for the week ill hit you up. Moving in a couple months too so might sell a bit right before the move.
:D
I will be sure to keep your name at the top of the list for people to sell silver to as i love the idea of my silver becoming legos.

Cool! Good luck with the move. The nice thing is metals have been going sideways for a few years now and I see anything changing soon!

im looking forward to when the value reaches where it should be IMO but till then keep stacking more and more.
:D
i like sideways. lol

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sad thing is I am one of those 40 million and the hoops I had to jump through just to get that help was crazy right now I would like more silver over gold but in my situation you can't be picky lol thanks for the great post brother

I didn’t mean to offend anybody with that statement. In fact a lot of Americans don’t have 500 dollars in their savings accounts. Good and services are way too expensive, food is tooexpensive, gas is too expensive. We live in an ever growing debt system!

fascinating I never even realised silver was as close to Gold in value ever. Until i read this
Thanks for shareing.

Yes in fact at one time Gold and silver were the same price. And with how long metals have been suppressed I could see it doing that again for a very brief time.

Ratio has to change for the better sometime. Hope I'm alive

We will be alive brother and we will be the ones on the right side of history when it does! 👍🏼🍺🥓

Dam great post hahahaha, definitely trading some silver for gold when the inflation hits lol

Thanks brother you and me both. Inflation is already here, just not full blown yet

Awesome post, with all the media you could have made three posts.

I know! Once I get going there is no stopping the babbling! Thank you brother

Gold son! Unless I have to buy one of those tacos to eat when I am old. 😂

Incredibly cool post little brother! 😎 I have to go with silver! I have never purchaced gold! The ratio is way too insane! It makes zero sence to me, other than gold takes up much less space. When silver skyrockets and gold stays the same, then we'll talk! 😀

Great post. I think of that happens or when that happens, i would trade a portion of my silver for gold and a portion to buy bitcoin or orther crypto.

I'd have to admit although I am a big fan of silver 😊 one of my goals this year is to increase the amount of gold in my stack. It doesn't hurt to have options!
Now if I can just stop buying silver long enough I'll start on that goal! Nice post Stackin! 😆👍💕

this is really good to let us know all this thanks. I am new to silver and gold. well this sounds like we should be buying silver.

Great post. I think I'll probably trade for gold. Makes sense to keep value in metals and take advantage of this present ratio. Like you I believe this ratio is unacceptably high.

I think silver is still the better buy with the current price and ratio, however I will pick up small amounts of gold too. Great post @stackinag47!

Very small amounts of gold until the ratio shifts closer to a 20-1 ratio. Then 1 ounce coins for sure! Thank you brother for your support👍🏼🍺🥓