You don't :)? The entire gold/silver ratio is based on scarcity, elasticity and utility.
Knowing the scarcity, and the elasticity of both gold and silver is very important and the reason why when both rise, silver always rises better percentage wise than gold and why the ratio collapses i.e. why a gold/silver spread here looks real good i.e. long silver/short gold.
And to put a finer point on that statistic, while silver is, and has been used up a lot e.g. photography and technology, and most of the easy mines, have been mined, silver is found closer to the surface than gold, there are lots of gold mines that can be mined at higher prices, plus most of the gold still exists.
So, while gold is very elastic, silver is not elastic at all i.e. approximately, 80% of silver comes as a by product of mining other metals like copper, zinc and lead, while gold deposits are mostly stand alone and are mined based on grades.
At a high enough price a lot of Nevada could be mine :).
The higher the grade the more the deposits that can be mined.
But people do not mine copper, lead, or zinc to get the silver credits.
So we are looking at a 5 year silver deficit, and on top of that huge amounts will be used in green energy, worldwide military build up, technology, and a monetary store of wealth and speculation.
As you know, silver has the best refraction of any mineral and is a very good conductor of electricity.
Cheers
Feel free to ask any questions.
| To: koan who wrote (311166) | 9/2/2025 2:20:35 PM | | From: Gib Bogle | of 311177 | | | | I don't see that the ratio of Ag to Au in the earth's crust has any relevance, but I can see that it is an entertaining idea. |
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