The gold/silver ratio measures the relative value between gold and silver. Investors can utilize the gold/silver ratio to increase their ounces in a precious metals portfolio without additional investment.
Economic crashes begin with artificially low interest rates and credit expansion which lead to a misallocation of resources, inevitably culminating in a recession.
Prior to 1971, the US dollar was backed by gold. Today, the dollar is backed by 2 things: the government’s ability to generate revenues (via debt or taxes), and its authority to compel economic participants to transact in dollars.
Monetary tightening has created difficulties for the US and foreign governments in managing debt. As these issues persist, gold’s role as a hedge against monetary instability and geopolitical unrest becomes increasingly important.
The drastic increase in debt defaults show that rate hikes are starting to bite. The “free money” measures during COVID-19 seem to have delayed, not solved, the problem.
Silver is often associated with “second place.” But don’t be fooled: silver is a remarkable metal that often plays a much greater role in our everyday lives than its glamorous yellow counterpart.