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Lemon Thrower
Penny Hoarding Member
USA
912 Posts |
 Posted - 11/05/2009 : 20:02:42
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quote:
Originally posted by Cody8404
If you look at the world history charts there was a spike of the silver to gold ratio for 5:1 in the 1500 when the Spanish stole the gold and silver from the Mexican Indians and took it to Europe. This changed the ratio because of the amount of silver the dropped on the market. The markets returned to the 1:15-20 ratio after China absorbed the excess.
The historic price is hard to say if this was high because this was before the dollar or even most modern currencies.
If you look into very early history silver was more valuable because gold, electrum, was found in nature, but silver was only available when refined from electrum.
I always thought the ratio was 15-16 to 1 until 1500, then spiked to 17 to 1 with the silver in the new world brought back by spain. after that there was a lot of fluctation. |
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Silver's all time high - an inconvenient truth
