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<p>[QUOTE=&quot;johnmilton, post: 25366193, member: 101855&quot;]The price ratio between silver and gold means nothing. It is a relic of past centuries when the production of both metals exceeded demand for rather brief periods. Two examples were the California gold rush when there was a surplus of gold. The “Arrows and Rays” silver coins of the 1853-5 were a reflection of that. In the 1870s to the early 1900s there was a glut of silver. The “free silver movement” was a reflection of that. </p><p><br /></p><p>The truth is there is no “magic ratio” between the two metals. They are commodities whose prices nothing to do with each other. Attempts to have a bimetallic monetary system always failed. The truth was gold and silver coins were effective mediums of exchange only when their face value was more than their melt&nbsp; value. Otherwise people withdrew the coins from circulation. “16 to 1” was mostly a political slogan. If it were true, it was only valid for a rather brief period.[/QUOTE]</p><p><br /></p>

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