Silver : The Hidden Multibagger Commodity
The Gold-Silver Ratio: A Historical Perspective For centuries, the gold-silver ratio —the number of ounces of silver equivalent to one ounce of gold—remained relatively stable, often fixed by governments to stabilize currencies. The Roman Empire set the ratio at 12:1 . In medieval Europe , it ranged between 9.4:1 and 12:1 . The U.S. fixed it at 15:1 under the Coinage Act of 1792 . Today, the ratio stands at 86:1 . If gold is priced at $2,600 per ounce and silver at $30, this suggests silver is significantly undervalued when compared to its historical benchmarks. Gold to Silver Ratio and Calculation of estimated price Why the Imbalance? Industrial Consumption: Silver is consumed heavily by industries, with insufficient recycling to replenish supply. Market Manipulation: Short-selling in silver markets suppresses prices, while national silver reserves have gradually reduced. Historical Context: For millennia, the rat...