The Current Gold Silver Ratio

WHAT IS THE CURRENT GOLD/SILVER RATIO?

Silver – To Gold Ratio: silver ratio at 65 ($1117/$17.10/oz), silver remains a compelling buy at these levels and will likely be the surprise outperformer in 2010 as it was in 2009 (up by more than 51% YTD as per table).

Silver has industrial uses which should mean that the gold/silver ratio will likely gradually regress to the average in the last 100 hundred years which is close to 40:1. If the tiny silver market was to see real funds enter it than the ratio could return closer to the historical average of 15:1 as it did as recently as 1980.

Silver remains less than half of its nominal record price in 1980 and very undervalued from a historical basis. It also just saw a tremendous increase in value in 2009 because people around the world are starting to buy it as a hedge against the devaluation of the US Dollar and other fiat (paper) currencies which governments continue to aggressively print.

The more paper money that is printed, the lower the value. And that tends to make people very nervous about inflation which lessens their purchasing power. To protect themselves they buy silver and gold.

You can buy silver and gold bullion from dealers at spot price.

Or you can join private silver and gold buying groups and take part in strategies that allow you to acquire gold and silver at BELOW spot price and even free.

Click here to learn about owning Silver BELOW spot price.