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The Alchemist/Adrian Ash/December 2020
“This explains why the gold/silver ratio shot to new all-time highs this spring, driven above its peaks of 1940 and 1991 as the COVID catastrophe almost shutdown global economic activity overnight, suddenly making useless, incorruptible gold supremely useful in a locked-down world. That peak however gave no real insight into our economic or financial future, not beyond predicting to eager traders that silver’s value – both industrial and investment – was very likely to rally.”
USAGOLD note: That rally might very well be on-going. Ash walks us through the monetary relationship between gold and silver down through British history with Sir Isaac Newton’s tenure as Warden of the Mint the centerpiece. Newton, he says, wrote three million words on science and math, five million on religion, and one million on alchemy – “secret codes, arcane symbols, occult figures, the lot.” An interesting diversion at the link that stops short of coming to any profound conclusions other than there is no ratio of gold to silver that rests on anything even remotely scientific, mystical, or eternal. However, it can tell us from a historical perspective if one or the other might be over or undervalued relative to the other. The ratio now stands at 75.5 to one and here is a recent chart rendering……We are still a long way from the 2011 bottom at 32 to one.
Chart courtesy of TradingView.com • • • Click to enlarge
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