Silver is cheaper than gold

Multiple conclusions can be drawn in regards to the price of silver vs gold, and whether one is cheaper relative to the other.

The quick math:

Today
1 oz of silver will purchase 28 candy bars (34.64 per oz/1.25 per bar)
1 oz of gold will purchase 1,422 candy bars (1,778 per oz/1.25 per bar)

1960
1 oz of silver would purchase 19 candy bars (.914 per oz/.05 per bar)
1 oz of gold would purchase 705 candy bars (35.27 per oz/.05 per bar)



Conclusions:

Silver purchasing power is closer to it's value in years past.

If gold is priced correctly, then silver is undervalued.

If silver is over valued, gold is way overvalued.

If silver is adequately valued, this is mute.

If silver is overvalued, then the price will decline.

I'll leave you to draw your own conclusion on monetary policy.




Notice this is not an article on whether or not prices were suppressed in the past, or if they are today.  This
is purely about relative comparisons.


As a side note, a strong case could be make that relative to wages, both silver and gold are expensive and this should be weighted when considering the need for more than 5% of net worth in precious medals.
((average hourly wage/gold)*40)



However, since they are insurance...perhpas one should own 5-10% of net worth in these medals.