Did You Know
according to https://inflation.us and some other sources that:
SILVER reached an ALL TIME HIGH adjusted for price inflation on 01-17-80 of $250.59 per ounce and as of close on 12-30-14 at an ASK price of $16.37 it is 93.47% below the high.GOLD reached an ALL TIME HIGH adjusted for price inflation on 01-21-80 of $4,291.36 per ounce and as of close on 12-30-14 at an ASK price of $1,201.00 it is 72.01% below the high.
GOLD/SILVER Ratios 1980 $4,291.36/$250.59 = 17.125 to 1 and 2014 $1,201.00/$16.37 = 73.37 to 1.When the first coins were made in Greece over 2500 years ago, the GOLD/SILVER Ratio was between
10 and 13.5 to 1 based on the proximity of the mines.
The U.S. Coinage Act of 1792 stated the GOLD/SILVER ratio to be between 15 and 16 to 1.
What's been extracted from the Earth throughout the millenniums the GOLD/SILVER Ratio has been estimated to be about 9 to 1.
The ALL TIME HIGH GOLD/SILVER Ratio was reached in January 1991 and was about 100 to 1.For my FIAT Paper, I will just continue to BUY BUY BUY and primarily SILVER because of the wide current GOLD/SILVER Ratio of 75+ to 1.
Nearly ALL the GOLD ever mined and refined is still in somebody's possession, which is not the case with refined SILVER. The Gold / Silver mined ratio out of the Earth's crust is about 1 oz Gold to 9 oz Silver. Is GOLD overvalued? Or SILVER undervalued? If you took a chart 45 feet long on which every foot represented 100 years of human history, the Gold / Silver price value ratio would remain under 16:1 for all but the last 15 inches. In fact, the first 40 feet (until about 1500 AD) the ratio oscillated under 12:1, and most of the time between 8:1 and 12:1.
DID YOU KNOW? The Bimetallic ERA until 1870 of Currency
U.S. Currency ($1's, $5's, $10's, $20's, $50's or $100's all weigh approx. 1 gram each), so 454 Notes would equal 16 oz Avoirdupois or 14.58 oz Troy.
$1,000,000 1 dollar notes / 454 = 2,202.643 lbs. or 35,242.288 ozAV or 26,431.716 ozT.
Take closing price on 1-21-15 Gold "BID" $1,292.90 per oz times 26,431.716 ozT =$34,173,565.62 value for that 1 ton of $1,000,000.00 in notes. Silver close was "BID" $18.11 per oz times 26,431.716 ozT = $478,678.38 value for a ton of U.S. paper currency.
Hard Assets vs Paper Assets which will hold its value over time?
Did YOU Know? Let's do the math
The original United States Coinage Act signed on April 2, 1792 established the monetary standard to be a "SILVER" Dollar consisting of 371.25 grains of pure Silver or .0773437 oz Troy weight. The exchange rate was to be 15 parts Silver (371.25 grains) to equal 1 part pure Gold (24.75 grains or 0.0515625 oz Troy weight) this was the PAR 15:1 Ratio Value (market price) between SILVER and GOLD (known as "Eagles" and "valued in") dollars and this is known as BIMETALLISM System of coinage (dual monies). Note, there are 437.5 grains (gr) in 1 Avoirdupois ounce (oz AV) and 480 grains (gr) in 1 Troy ounce (ozt). Further, the law stated there was to be 11 pennyweights (dwt) or 23.997 grains of pure COPPER in the 1 cent piece and 100 (11 x 23.997 x 100 = 26,397 grains or 54.99375 ozt) to make a $1.00. However, with the use of Copper Coins it was really a TRIMETALLIC System making the value of (26,397/371.25 =71.103 gr Copper x 15 oz = 1,066.545 oz of Copper to equal 15 oz or 7,200 grains) of Silver. Likewise, to equal 1 oz (480 gr) of Gold or 1,066.545 oz Copper (26,397 gr / 24.75 gr). No where did it state that a piece of paper was One Dollar.
So ounces to ounces there would be: 1,066.545 oz CU = 15 oz AG = 1 oz AU
Today as of the 05-10-15 Kitco "Ask" closing prices Silver (AG) $16.50, Gold (AU) $1,188.50 and Copper (CU) $2.89 lb Av or 14.583 ounces troy . If you do the math the ratios in Troy ounces would be: Gold/Silver 72.03 ozt AG :1 ozt AU, Silver/Copper 82.97 ozt CU : 1 ozt AG and Gold/Copper 6,000. ozt CU :1 ozt AU.
Now a current value based on 1792 Coinage Act standards would have 1 Silver Dollar ($16.50 x .773437)=$12.76, 1 Gold Dollar ($1,188.50 x .0515625)=$61.28 and 100 Copper Cents ($2.89/14.5833 ozt =.19817 per ozt) 54.99375 x .19817=$10.90 for 1 Dollar (100) in Copper Cents.
Do you think we're a little off from the original monetary standard LAW set in 1792 by the founders of this country and not the bankers (aka Federal Reserve).