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<p>[QUOTE=&quot;medoraman, post: 1001076, member: 26302&quot;]Well the ratio has been adhered to for at least 4,000 years of human history up until the last 40 years or so. I am not sure that is a folly on its face. The 16:1 ratio was used since it is a rough indication of relative scarcity of the metals in the earth.</p><p><br /></p><p>The folly would be to say that since there is such a large ratio now, silver must go up. Why doesn&#039;t anyone make the argument that gold has to come down? There is nothing at all to say which way PM&#039;s prices would move to get back into the historical ratio, if they were to do so. The other major fact that I believe the ratio will not move back to historical levels is there are certain cultures, not having much input historically into the European exchange ratios, that have a nearly endless demand for gold as culturally gold, and only gold, is a guaranteed store of value and is used intensively in weddings, gifts, etc. My wife is from this culture so I experience it first hand. She always wants me to buy more gold.[/QUOTE]</p><p><br /></p>

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