Historically The Gold Silver ratio has been around 1:15 it is now about 1:60 which is interesting to say the least. Silver is a commodity that has industrial applications which gives it a  greater demand that gold. I have researched this for many years (about the past 15yrs or so). I have always traded gold either on paper or through a broker on margin, but not ever been overly interested in the grey metal (silver), now I am taking more interest due to the expanding ratio.

It’s interesting to see silver it is not only used in monetary exchange but also as an industrial product and in so many different areas from Photography and coins to batteries, electronics and to mirror coatings. I  have read many things over the years about the Silver gold ratio and right now the way gold is silver has to follow it trend. I also see the price of gold not retracing or dropping any time soon, to anything under the $600US an ounce.. if you were to look at the historical price ratio being as i said 1:15 then the price of gold should be about $300US an ounce. I have also come across commentary that gold could even go  a lot higher that current price to $3000….hmmm SO will it I don’t know, I do know and look at the demand for the yellow metal and the supply factors. A lot of small mining operation have cropped up since the price broke $1000 mark.

I know of a operation here in Australia where they are in a rich deposit of gold and are expected to mine 120,000 ounces of gold in 2010 at a cash cost of $650US per ounce.