Contact us
CALL US NOW 1-888-GOLD-160

Silver Hasn’t Been This Cheap in 5,000 Years

  by    0   4

We have financial records dating back some 5,000 years and in all that time, silver has never been this cheap compared to gold.

Kanesh was an important trading hub in the Assyrian empire. The city was located in the middle of what is now Turkey, at the midpoint of the route between the Mediterranean and the Black Sea. 

Archeologists have found thousands of clay cuneiform tablets in the region that provide a tremendous amount of detail about ancient financial transactions. For instance, one tablet on display in the New York Metropolitan Museum documents the terms of a loan dating back to the 19th century BC. An Assyrian merchant named Ashur-idi loaned 3kg of silver to two traders, with 1/3 of the amount to be repaid in one year’s time. 

Other tablets give us a pretty good idea of exchange rates. A Babylonian tablet reveals that that 5 shekels of silver were worth ½ shekel of gold. This implies roughly a 10:1 ratio between silver and gold.

This ratio makes sense. Geologists estimate that there are approximately 19 ounces of silver for every ounce of gold in the earth’s crust, with a ratio of approximately 11.2 ounces of silver to each ounce of gold that has ever been mined. Of course, the actual ratio will fluctuate over time with given conditions. Interestingly, the silver-gold ratio in ancient Egypt was 1:1.

In 1792, the gold/silver price ratio was fixed by law in the United States at 15:1. France mandated a ratio of 15.5:1 in 1803. Faced with the challenges of a bi-metallic monetary system with fixed exchange rates and the aftermath of a worldwide financial crisis, the US Congress passed the Coinage Act of 1873. Following the lead of other Western nations, including England, Portugal, Canada, and Germany, this act formally demonetized silver and established a gold standard for the United States.

As Sovereign Man founder Simon Black pointed out in a recent email, up until the 20th century, the silver-gold ratio remained within that ancient range of between 10 to 20 units of silver per unit of gold. As gold and silver’s role as a medium of exchange diminished, the spread widened, averaging around 40 to 5o-1. 

Today, that ratio is over 113 to 1.

That’s way out of whack.

In fact, this silver-gold ratio hit an all-time high of 120-1 back in March. In other words, silver has never been this cheap in some 5,000 years of human history.

It was just a year ago that we were talking about “silver on sale” when the gold-silver ratio pushed above 80-1.

Black summed it up this way.

If history is any guide, this means that the ratio should eventually narrow, i.e. the price of silver should rise and/or the price of gold should fall, bringing the ratio back to its more normal range.”

Given the inflationary monetary policy from the Federal Reserve, Peter Schiff has said that the dollar is cooked and that we will see a rush to gold. Black agrees, writing, “One thing that has become clear is that western governments will print as much money as it takes to bail everyone out.”

So, it seems unlikely that the price of gold will fall in order to close the gap. In fact, historically, silver tracks roughly with gold and has outperformed the yellow metal in a gold bull market.

Now is the time to take advantage of silver on sale. Talk to a SchiffGold precious metals specialist today to learn how you can profit from this historically high silver-gold ratio. After all, 5,000-year opportunities don’t come around every day. Call 1-888-GOLD-160 or email

Get Peter Schiff’s key gold headlines in your inbox every week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

Related Posts

Summer Feeling Hotter Than Usual? Gold Could Be Too.

Certain climate scientists, research economists, and precious metal investors agree: This year could be one of the hottest on record.


Metal of the future? Gold‘s uses in technology

While demand for Gold as an investment has risen greatly historically, and particularly over the past year, recent technological discoveries provide powerful potential for Gold to increase in prominence as an industrial resource. While gold does provide an excellent and relatively safe store of value, its industrial use could rapidly increase its price and universal […]


Gold’s Natural Scarcity Propels its Valuation Growth

The U.S. abandoned the gold standard in 1933. But ninety-one years later, in the midst of an inflation crisis, investors are flocking back to the original. The U.S. government is set to print about $200 billion in bills in 2024. That’s $548 million for every day. Despite the rampant inflation reducing consumer purchasing power around […]


SchiffGold Exclusive: Utah State Representative Speaks on New Precious Metals Law

As the U.S. economy progresses toward monetary catastrophe, individual states are taking action to preserve and enable the use of sound money. Utah recently passed HB 348, which took effect in May and authorizes the state to invest a portion of its funds in precious metals. State Representative Ken Ivory sponsored the bill, and in […]


Chinese Central Bank Halts Gold Acquisitions

China has called quits on its 18-month gold buying spree, causing precious metal prices to stumble this week as the world’s largest buyer unexpectedly closes its tab. In 2023, the People’s Bank of China purchased more gold than any of the world’s other central banks, swelling its reserves of the precious metal to more than […]


Comments are closed.

Call Now