In the century since the creation of the Federal Reserve, the ratio’s been all over the place. The key is that it’s bottomed at or around 16 three times in the last century – 1919, 1968 and 1980.
Sanders is among many who believe long term, it’s headed back toward 16. Canadian fund genius Eric Sprott is another. Sixteen was the ratio for centuries before massive silver discoveries in the Americas in the 1800s.
With gold at $1,500 today, a 16:1 gold-silver ratio implies $94 silver. That’s a compelling case for silver… and with the ratio reverting for the moment above 40, silver’s on sale.