The gold silver ratio represents the number of silver ounces it takes to buy a single ounce of gold. Historically speaking, the gold silver ratio has rested somewhere between 15 and 10 to 1, reflecting the average supply of each metal. There were times throughout the history of money where the ratio was even lower — China once had a 4 to 1 ratio and the ancient Egyptians even had a 1 to 1 ratio at one point.
Interestingly, the gold silver ratio correlates strongly with the US Dollar index, which measures the strength of the US Dollar relative to foreign currencies. The US Dollar Index is a lot less volatile than the gold silver ratio. Therefore, for better visualization, it is raised to the 3rd power.
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