The Last Ship

Gold and Silver Ratio Increases Profits For Coin Collectors and Investors

What is the gold and silver ratio?

How can the silver to gold ratio help you invest in rare coins and bullion?

It is the ratio of how many ounces of silver it takes to buy an ounce of gold.

In the very early days, 3500 BC in Egypt the ratio was at, 2.5:1……..This means it took 2.5 oz silver to buy 1 oz gold.

In the 1980’s the ratio was around 45 to 50:1.

In the 1990’s the ratio fluctuated between a high of 110:1 and a low of around 78:1.

Many coin and bullion dealers use this ratio to decide when silver is cheap or overpriced.

Today, 2008 January we can see the silver to gold ratio is around 55:1.

How to use this ratio to purchase gold, silver and rare coins.

By calculating the ratio, divide the price of gold by the price of silver, $610, 16.50=36.96 ratio 1/28/2008

In 1972 the mint coinage act set the price at a ratio of 15:1.

I doubt if we will ever see this ratio again as it is not in relation to the low value of the US dollar.

The average ratio over the last 20 years has been around 50 to 60 to 1.

A good time to be a buyer of silver bullion and silver rare coins is when the ratio is high.

Any time it is over 35 to 110 is a good time to be a buyer of rare coins and silver bullion.

The higher the ratio the better value silver is…Be a buyer.

What to do now that precious metals are higher.

Continue to collect silver coins as you have done and also get the key coins you need for your sets.

As more collectors and investors build their collections it will become harder to find the silver and gold coins you need.

TV, EBAY and other Auction sales are removing the supply from dealers and making it harder to find the coins you want.

Prices continue to rise with these sales and the higher price becomes the norm.

What is the most collected coin?

The penny. Don’t be fooled by this. It is the easiest coin to save as no one misses a penny. But……

Copper as an industrial metal, along with silver have risen to some of the highest levels seen since the 1980 boom.

Why?

China, India and other countries want to build their countries up to American standards.

This means commodities are in demand and will be for the next 10 to 20 years.

Continue to collect silver coins as you have done and also get the key coins you need for your sets.

As more people collect they will be harder to find.

Copyright 2008 Richard Irby