Global Currency Reset, Amero, The Gold Silver Ratio and $150 Silver

There are a number of reasons that silver should revert to the long term historical mean but the two primary ones are the fact that geologically in the earth’s crust there are fifteen parts of silver to every one part of gold. The other reason is that silver is used in many industrial, technological and medical devices and applications today and since the Industrial Revolution a huge amount of silver has been used up.  Silver is like oil in that respect, and unlike gold, a lot of silver has been consumed and is gone forever.

Today’s AM fix was USD 1,226.50, EUR 902.50 and GBP 747.37 per ounce.
Yesterday’s AM fix was USD 1,237.50, EUR 907.92 and GBP 754.44 per ounce.

Gold fell $6.50 or 0.52% Yesterday, closing at $1,232.30/oz. Silver slipped $0.30 or 1.49% closing at $19.87/oz. Platinum dropped $3.01, or 0.2%, to $1,409.74/oz and palladium rose $3 or 0.4%, to $738.25/oz.


Gold Silver Ratio – 1960-Today

Gold edged down in London for the second day ahead of the release of the U.S. Federal Open Market Committee minutes. Strong support is at $1,180/oz which could turn into a double bottom and resistance is at $1,250/oz and $1,270/oz.

FXStreet.com’s Dale Pinkert interviewed Research Director, Mark O’Byrne on Monday about the current state of the gold and silver markets, the history of paper currencies, a global currency reset, the amero currency, the gold silver ratio and silver rising to $150/oz in the coming years.

Another topic looked at was bail-ins by banks of individual creditors becoming one of the most under appreciated risks of our time and noting Poland’s recent government confiscation of pensions.


Silver in U.S. Dollars, 5 Year- (Bloomberg)

They discuss how the gold silver ratio throughout history has been 15:1. Today it is at over 60:1 (see chart) and GoldCore believe it will revert to the mean.

There are a number of reasons that silver should revert to the long term historical mean but the two primary ones are the fact that geologically in the earth’s crust  there are fifteen parts of silver to every one part of gold.

The other reason is that silver is used in many industrial, technological, medical applications today and since the Industrial Revolution a huge amount of silver has been used up.


Silver in U.S. Dollars, from 1970 – (Bloomberg)

It is for this reason that we are more bullish on silver than on gold in terms of price. We continue to believe that silver will surpass its inflation adjusted high of $150/oz in the coming years.

It was noted how  international storage of coins and bars is becoming a popular diversification for U.S. citizens in Zurich, Singapore and Hong Kong.

Dale asked some good questions and had a great expression that we had not heard before “Don’t wait to buy gold and silver. Buy gold and silver and wait.”

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6 comments on “Global Currency Reset, Amero, The Gold Silver Ratio and $150 Silver
  1. BankingThiefs says:

    “there are fifteen parts of silver to every one part of gold.”

    Not sure where you get that info from but the mines I invest in it’s more like 80:1 just go read the production reports of the biggest silver miners in the market!

    $1232 / 80 = $15.40

  2. JB says:

    I don’t think the Feral Reserve is just going to reset or just intentionally crash it. That will ensure their will be NO FED version III. They need a Civil War and/or yet another War, so they won’t get the Blame and ensure their will be a Club Fed Version III. Unfortunately the World is on the Brink of Peace, and that just can’t be allowed to continue. And that can only mean a big Falsie, bigger than 911. Will America fall for it one more time, probably, well most certainly, well absolutely.

    When ?-?-?

  3. vietprincess80 says:

    A lot is made of the fact that the silver:gold ratio is very low, and that silver would need to come down a lot (relative to gold) to get back in line with historical ratios.

    But usually that discussion looks back a few decades.

    Deutsche Bank’s Daniel Brebner goes a bit further. Actually a lot further. Actually through the history of time, since the formation of the earth’s crust.

    From the 12th to the 17th century, the gold/silver ratio held reasonably constant at about 12:1.
    Isaac Newton monetized silver and set the ratio at 15.5 early in the 18th century and this held until 1873.
    In terms of relative abundance in the earth’s crust, silver exceeds gold by a ratio of about 18.75.

    Read more: http://www.businessinsider.com/gold-to-silver-ratio-through-history-2011-3#ixzz2poeWcdER

  4. vietprincess80 says:

    Pure Silver mines are only around 10% of the mined Silver. The rest of the Silver is mined with other bulk elements like Copper. There is also Silver reclamation (re-cycling).

    The reason why the modern ratio is so low is because of the huge demand for Copper. As the very large copper mines are operated they also bring up Silver as a trace metal, which is then liberated separately and reduces the cost of the Copper mining operation.

    If the world economy slows down there is less demand for copper and then there will be less Silver mined as a byproduct of the Copper operation, and then the Gold/Silver ratio will increase again to its ‘natural’ ratio.

    Copper and Copper-Zinc mines usually produce Copper, Silver, and Gold.

    In the Earth’s Crust:
    Rare Earths: 0.023%
    Nickel: 0.0075%
    Zinc: 0.0070%
    Copper: 0.0055%
    Lead: 0.0013%
    Uranium: 0.00027%
    Tin: 0.00020%
    Tungsten: 0.00015% [this is 150 parts per million %]
    Silver: 0.000007%, or 7 parts per million (%)
    Gold: < 0.000005%, or <5 parts per million (%)
    Platinum metals: <5 parts per million (%)

  5. Steven says:

    With there being between 3.5 and 7 people on earth for every ounce of unconsummed silver $150.00 and ounce for silver is not good enough! If one or two ounces of silver buys a very nice house and land then there might be something to talk about but not before.

  6. backchecking says:

    vietprincess80…

    You are correct… but didn’t go far enough.

    You need to toss in those mines dedicated to lead. Silver is a byproduct of virtually every lead-zinc deposit known… and at even higher concentrations than in most copper lodes.

    The second silver is re-monetized Mexico will become the world’s number one source. She has long had the best deposits. One of the largest mines is on Mexico City’s doorstep; so close it’s operations are poluting the city.

    Beyond that, silver has ALWAYS been the metal of commercial trade… long before gold ever was.

    Gold was the first metal ever discovered — obviously. It was found as pure gold in glacial streams as a placer deposit.

    Its color resemblance to our star, the Sun, HAD to be stunningly obvious from the first second.

    Under high heat, gold melts — but does not skin over with an oxide! In this it is unique. When molten it glows, radiates, with tones identical to our Sun! It’s a stunning thing to see.

    Few have ever seen this effect in person. Film does not do it justice. Images only show color. They don’t show that it’s emitting like a weird light-bulb.

    Obviously, the ancients assumed that placer gold nuggets were pieces of the Sun that had fallen to Earth — and represented the “tears of heaven” or some such. Being the very fist metal discovered there could be no other point of referrence.

    So, for thousands of years gold was nominated in religious terms. This is why from the Aztecs to the Inca to the Old World gold was owned by the priests — and the Big Man — and DID NOT TRADE.

    Silver was another matter. It was deemed feminine. If gold = the Sun; then silver = the Moon — the Other celestial god. Between the Sun and the Moon you pretty much have the archaeo-calendar. The extreme whiteness of silver — and its placer combination with gold (married metals) was suggestive of corporeal events.

    Well, in the anicent times, maidens could be exchanged (married off) — never sons. (They kept their father’s name — and culture.)

    It was no great leap for ancients to resolve to keep the gold and to trade the silver… of which there proved to be ever increasing amounts.

    The romance languages still point back to silver / argentum as money, itself… never gold. (“Argent”) [Leading to every manner of derivative words, like "agent":: money (source) man, and all the rest... even a nation: Argentina.]

    Silver launched:

    Constitutional America (gold was an afterthought)

    Imperial Spain
    Imperial France
    Imperial Britain (silver poverty triggered Opium Wars)
    Imperial Austria
    Classic Rome (the gold stayed in the vault — mostly)
    Classic China (silver thirst triggered Opium Wars)
    Classic India (still can’t get enough for their wives)

    BTW, both Rome and Austria were getting their silver from the same Balkan lodes. Both used amazing hydro-engines to lift ores and drain water. The old digs are still there if you’re crazy enough to visit. (Old adits are treacherous.)

    So, when specie returns it will return as silver, not gold.

    See Weimar Germany; the two-mark (silver) coin.

    You know something’s off when straight silver mining is practically unknown. It’s price is that far off.

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