The Gold Silver Ratio And $150 Silver

January 9, 2014'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.”

(Courtesy of )

Mark O'Byrne is executive and research director of which he founded in 2003. GoldCore have become one of the leading gold brokers in the world and have over 4,000 clients in over 40 countries and with over $200 million in assets under management and storage.We offer mass affluent, HNW, UHNW and institutional investors including family offices, gold, silver, platinum and palladium bullion in London, Zurich, Singapore, Hong Kong, Dubai and Perth. 

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