Will Silver Always Be Second to Gold?
Today I wanted to comment on the article written by Roubini Global Economics.. First the title is theirs and secondly the overall thinking of the article is simply that silver will not reach the price of gold. I agree– what I wish to point out is some factual errors that the full article states. The most glaring is that the ratio of silver to gold in the ground is 16 to 1. This is off by a factor of two! The current ratio is about 8 to 1. It has never been higher than 12 to 1, yet this kind of mis-information is present all over the web.
The monetary ratio is (was) 16 to 1. The natural ratio (amount of silver to gold in planet earth) is now 8 to 1 and going back into the 12th century was twelve to one.
Here is a link for the Roubini article: http://www.roubini.com/analysis/104274.php