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Historically gold to silver ratio was around 15 -- Coinage Act of 1792 defines ratio to be exactly 15, for example. I don't think abundance of gold and silver c
by sanxiyn 13y ago
Historically gold to silver ratio was around 15 -- Coinage Act of 1792 defines ratio to be exactly 15, for example. I don't think abundance of gold and silver changed much since then. So change from 15 to 60 indeed is based on the reputation of gold.
- scotty79 13y agoRoughly there's 10 times as much silver mined as gold. So you are right that 60 times is a bit high. 17.5 times is estimated proportion of those metals in earths crust (not sure if it takes into account gold and silver dissolved in oceanic waters. Whether the difference between the actual price of gold and the price that can be derived from fundamentals is a value of trust in gold or, as BAML puts it in case of bitcoin, speculation, is up to debate. Pointless I think because speculation is enabled by trust.