Why Gold Costs More than Silver

Besides the ratio of 17.5 to 1 favoring gold, explaining why gold's price is reaching levels of 80 to 1 is not that difficult to understand. The float, or available ounces of the two commodities is simply a matter of the centralized control of the gold supply and the free floating nature of the silver supply. The underlying value of silver is far greater than that of gold. The demand for silver in relation to gold is enormous.

To understand the magnitude of the silver float you can easily research the production values of silver coins at http://www.coinfacts.com
The numbers below are in millions of ounces. The numbers for in circulation coins has been reduced by 50% to take into account the amount of the coins that were melted for silver content.

The previously circulated coin mintage value was figured using the following formula. ((number of coins produced)/2(percent melted)*(the coins silver content in ounces per individual coin)

Note: the 1.7 billion float of silver is conservative, If you wish to increase the amount of silver coins you feel were melted in the Pittman Act, or from the Hunt Brothers incident, please then add the total manufactured in circulation coins for all the other countries besides the US. China,India,Japan,Russia,Australia,Africa,Spain,Mexico, were NOT used in calculating the 1.7Billion number.

SLV ETF 226
Comex 140
Morgan Silver dollars 289
Silver EaglesTotal 176
Canadian Silver Maple21.4
Kennedy Half Dollars363
Peace Dollar 90
Franklin Half dollar80
Washington Quarters305

Category:

Education

Tags:

• Gold and Silver ratio
• Gold to Silver ratio

[mauriciorodriguez67]

ARE YOU FROM SILVER PLANET?

[BIGBKELtheGOD]

@quadcatfly

"but dont worry, government will be here to help!!!"

Help my ass! They will be their with 8 inch needles to pump more blood out of us turnips!

[quadcatfly]

I predict 2012-2014 to be the end game year. that is when the gold/silver will go into the stratosphere. bank holidays, social unrest and of course a new war. but dont worry, government will be here to help!!!

[Steve2323ZX]

@thecomicsitedotcom that's funny comic. you might as well have said, when pigs fly you'll be standing in line for government cheese because they both have the same probability of happening.

even if golds price fell from it's current price of $1200 down to $600 per oz.. silver at $601 means it would have to multiply in value 30 times. good luck with that.

[thecomicsitedotcom]

@Steve2323ZX When silver costs more than gold you'll be standing in line for government cheese and bread good luck with that.

[Steve2323ZX]

@thecomicsitedotcom yeah pulling facts off google makes you an expert. the day silver is worth more than gold I will gladly eat my words. not that i have anything to worry about.

[thecomicsitedotcom]

@Steve2323ZX

Nice try but yet again, your knowledge base shows your age or lack there of it. In May of 98 Palladium did in fact cost more than gold, you are debating a topic about which you know very little to nothing. Before you spout off at the mouth try doing some serious research. Incidentally anyone who took my advice to buy silver when the post was made is now up 100% on their money. I'm up 100k how about you?

[Steve2323ZX]

@thecomicsitedotcom spend some time in the chem lab. palladium also has unique properties, has many industrial and is more rare than gold. none of those reasons will make it more expensive than gold. the same goes for silver

[thecomicsitedotcom]

@Steve2323ZX  And spend a little time in the history department, Silver has already been more expensive than gold. See what the first Egyptian Pharaohs sarcophagi were made of (silver) why? Because at the time it was more rare than gold, and yes more expensive too. no werewolves though.

[thecomicsitedotcom]

@Steve2323ZX

It is called supply and demand, go take an econ course above the 100's and perhaps you will better understand.