➡ The video discusses the gold-to-silver ratio (GSR), which is currently high, indicating that silver is cheap. The speaker theorizes that as societies become wealthier, silver becomes less valuable because gold becomes more abundant and is used more in trade. This theory is supported by historical examples, such as King Solomon’s era when gold was abundant and silver was considered less valuable. The speaker also discusses how the GSR has fluctuated over time due to various factors, including the demonetization of silver in 1873.
➡ Inflation can make society seem wealthier than it is, causing the gold to silver ratio to rise. However, when the true economic situation is revealed, this ratio drops. The production of silver has increased faster than gold, but due to its industrial use, demand also rises. The current high gold to silver ratio suggests an inflated economy, and when this is exposed, the ratio could drop to historical levels, indicating a tough economic period.

So what is happening now? Why is the gold-to-silver ratio so high? Why is silver so cheap? Hey guys, Rafi here from The In-Game Investor, and today, I’m going to discus the gold-to-silver ratio A.K.A. the GSR. A lot of people have been asking me, Rafi, when is silver going to recover? Why are we in a triple digit GSR, gold to silver ratio of 100 and above to one? Why does this make any sense? What is a coherent theory regarding what the gold to silver ratio is? Why is it going all crazy? And I looked into this and I came up, I think with a cogent coherent theory, it might have some holes in it.

It’s not perfected, but I think it is basically sound. Now, we’re going to start here with the book of Kings 1, actually, Chronicles 1, which is a repeat of Kings 1 because it talks about the price of silver relative to gold in a rich society. It’s the basis for my theory here. My theory is as society gets richer, silver becomes cheaper because gold becomes more plentiful and you use more gold for trade, whether it be globally or even between people. If there is more gold because people are richer, then silver becomes less important and becomes cheaper.

And you’ll see in one particular chart that I’ll show you on the slides that the gold to silver ratio has been in a trajectory sloping gently higher and should be at around 20 to 1 if we were in a free market. But since 1873, when silver was statutorily demonetized and the dollar went entirely on gold and became a gold derivative, which it still is. If you’ve been following this channel and my work, the dollar is still a gold derivative just inflated with a lot of debt that will default and will erase. And then the dollar will go back to gold.

Or if the dollar doesn’t survive the default of the massive amount of debt that is on the Fed’s balance sheet, then we will return to money directly and the dollar will be dead. In these series of charts and explanations, you’ll see the trajectory of the gold to silver ratio, why we have been zigging and zagging from 15 to 1 all the way to 130 to 1 ever since 1873, and also why the gold to silver ratio should not necessarily rise, meaning silver should not become cheaper just because its production is accelerating faster than the production of gold.

Let’s start with Chronicles 2, the story of Solomon, the richest king in the first Israelite commonwealth, imported humongous amounts of gold and silver became basically worthless. And yes, this video is brought to you by Miles Franklin. If you want gold and silver before the dollar collapses, go to Miles Franklin, their website. Check the link in the description below and mention the endgame investor. And if you want to put some of your gold and silver in a dirty man safe, use the link in the description below and use the code endgame10 for 10% off at checkout.

And don’t forget to subscribe to the endgame investor on substack. Link in the description below. Going all the way back in time to about 1000 BCE. That is about 2000 or 3000 25 years ago or so. We see here this is Chronicles 2, 9 I pick Chronicles over Kings because it’s slightly more descriptive here. So we have the gold that Solomon received every year weighed 666 gold talents. That could be where people get the idea that 666 is a bad sign, sign of the devil, whatever they say. I’m not really familiar with that sort of angle.

This was the pinnacle of Israelite society and was all downhill from here. The pie shall be cut in two and each man shall receive death. I’ll eat the pie. We continue in the English besides what traders and merchants brought and the gold and silver that all the kings of Arabian governors of the regions brought to Solomon. King Solomon made 200 shields of beaten gold, 600 shekels of beaten gold for each shield, 300 buckles of beaten gold, 300 shekels of gold for each buckler. The king placed them in Lebanon forest house. The king also made a large throne of ivory overlaid with pure gold, 6 texts up to the throne, blah, blah, blah.

A huge chair with a bunch of gold in it. We’re going to skip down all to this verse. Remember 20 verse 20 chapter 9 verse 20 in Chronicles. So it says all of King Solomon’s drinking vessels were of gold and all the utensils of the Lebanon forest house were of pure gold. Silver counted for nothing in Solomon’s days. So we see here that not that it was literally worthless, but it didn’t really count for much at all. And so we have the base of a theory here that the richer a society is, the cheaper silver is.

And the higher the gold to silver ratio becomes. I don’t know exactly what the gold to silver ratio was in Solomon’s time in ancient Israel, but it was much higher than 15 to 1. If we are to fast forward from Solomon to Roman times, we do know that the gold to silver ratio statutorily in Rome was 12 to 1 for raw silver to raw gold. The coinage was 25 denarii to 1 gold aureus. I, or it was an aureus, I don’t know exactly how it’s pronounced. I have made a mistake in the past thinking that the gold to silver ratio was 25 to 1, but that was only in coins because the size of the silver coin was smaller in volume than the gold aureus or aureus.

So what it really was, was a 12 to 1 gold to silver ratio. And now let’s fast forward another thousand years to the year 1100, where we can get a 1000 year chart of the gold to silver ratio, thanks to gold charts are us. So starting from about 12 to 1 in the Roman period, we have here what looks to be at around the same number. And we’ll stretch this chart out to see a more exact number in the next few slides. But you can see here, there are four rectangles that I drew, four devaluations.

And what is a devaluation? A devaluation is essentially the revelation of poverty that people are actually poorer than they thought they were. The currency doesn’t work anymore because of coin clipping or what inflation was back then. So you clip coins in order to be able to print or mint more money in that case. And that allows the government to finance its deficits, but it makes people poorer, as we all know. So first we had silver devaluations and that brought the gold to silver ratio down here in a little trough. We’ll zoom in on this. You can see it better in the next chart.

This happened four times. Let’s zoom in. You can see here at around 1320, 1330, first silver is devalued and then gold is devalued. Same process here, first silver devalued, then gold, first silver, then gold, first silver, then gold a few years later. But what was going on here that was causing these devaluations and how exactly did it affect the gold to silver ratio? We can see that this is the history of the silver price going back to about 1100. This, it says here, it’s labeled the Edward III default and devaluation. Henry IV devaluation during the 100-year war in the 1400s.

Edward IV devaluation, Edward VI devaluation each time silver price moves higher. Now here is where I stretched out the gold to silver ratio on the bottom of this chart over here. Fast forwarding. Now stretching out, you can see the numbers a little bit warped here because I’m trying to give you a better indication of where this gold to silver ratio has been going. You can see here, these are the devaluations that we showed in the previous charts. So the devaluations go, I drew a black line here going to about 7 to 1 because we know that this line over here, this blue line that I drew, this is the 15 to 1 line where gold to silver was prior to 1873, the crime of 1873 when silver was devalued relative to gold and the dollar became an exclusively gold derivative rather than a gold and silver derivative.

We were no longer on a bimetallic standard. Silver was abandoned monetarily in favor of gold and that’s when the gold to silver ratio started really going off the rails. But despite that, we can see that there is a trend line starting from around 1100, moving gently higher. And if we were to continue this trend line through 1873, we would be at around 20 to 1. Why is that? I believe it’s because as humanity progresses, we get richer over time because we learn how to produce more goods and services and know it’s a very bumpy ride. Overall, society does become richer and the gold to silver ratio rises gently.

This is not really part of that. This is a statutory nonsense move by demonetizing silver and making the dollar an exclusively gold substitute. It drives the silver price insane relative to gold as society looks like it’s getting richer as the gold to silver ratio moves to 100 in huge inflationary times. What does inflation do? It lies about how rich society is. I call it wacknackery, zigzagitude over here because of the zigzagging. So as society thinks it gets richer because of the inflation, as people think they have more money but they don’t really, the gold to silver ratio moves to 100 or even higher.

That’s where we are now. And then as the poverty of the inflation is actually revealed, we go down to about 15 to 1 in panic times. That is an effect of the demonetization of silver. It is not natural law. Now, where do people get the idea that we could go as far down as 7 to 1? From over here, from around 1450, 1550, we went down to a 7 to 1 ratio. That means society is extremely poor, which is what happened after these devaluations in these times. We don’t want to go back to those times.

Those are scary times. Now, let’s talk for a second about gold production, the acceleration of gold production versus the acceleration of silver production. We can see here that gold production since 1850 is up around 14.6 times. I drew a line here, which is at around 250 tons or so. We are now at 3,661 tons annually. So if you take 3,661 divided by about 250, you have an increase in production of gold about 14.6 times. Now, if we go to silver, the acceleration has been stronger. If we draw the same line from 1850, 1850 is around 1,000 times.

It’s somewhere between the zero and the 2,000, let’s just estimate. It’s about 1,000 tons annual production. Now, we are at 25,495 tons. That is an increase in acceleration in the production rate of silver of 25.5 times. Now, you would want to say maybe that since the silver production rate has been accelerating faster than the gold production rate, 25.5 times versus 14.6 over here, you might be tempted to say that the gold-silver ratio should rise, meaning silver should become cheaper relative to gold, because production is accelerating faster than the production of gold. However, silver is an industrial commodity.

And the more industry, the more production, production means industry, the more production capacity we have, the more industry we have. Therefore, the demand for silver goes up industrially, which should, under natural law, natural circumstances where statutory monetary law doesn’t interfere in nature. The gold-to-silver ratio should still continue to gently slope up higher as society becomes richer towards the times of Solomon, when society, as recorded in the Bible, was the richest it ever was. So what is happening now? Why is the gold-to-silver ratio so high? Why is silver so cheap? So why, then, is the gold-to-silver ratio at triple digits now? We’ve seen the crazy zigzag since 1873, as inflationary cycles get worse and worse, and the lies that it creates about how rich society actually is become more magnified.

This has happened before. We have entered a 100 to 1 or higher gold-to-silver ratio, but every time the poverty is revealed, we go back down to 15. We saw also that the devaluations of the Middle Ages, 1300s, 1400s, 1500s, brought the gold-to-silver ratio down to 7 to 1, which is, I believe, the depths of societal poverty. We could get down that far. I don’t think we will, but it is possible, because the dollar, as we know, is an exclusively gold derivative. Once it is no longer functioning as a gold derivative, silver will be the only way to function on a retail level.

I don’t know how high the ratio will get, but I do know that once the inflation is revealed as a lie, we will head back down to the historical monetary ratio, which should be at around 20 to 1 now if we’re going to follow the trajectory since 1100. But since the revelation of poverty is going to be very extreme, we are probably going to head down to 15 to 1 for a while, and we could get as low as 7 to 1 once the dollar collapses completely. But the world that we will be in, if that is going to happen, is not going to be a pretty one.

But the more people that have silver now, the faster we will be able to get out of that world and back into a world of a functioning money derivative of functioning credit, which is going to take a while. But before we get there, you’re going to want to have money in your pocket, and I don’t mean credit. I mean coins. This is Roth of the Endgame Investor, wishing all the silver stackers success as the final bubble pops and we head from a triple digit gold to silver ratio to somewhere around 15 to 1.

It’s going to happen. It’s going to be rough. It’s going to be brutal. Some people are not going to survive it, but those that do and have silver are going to be responsible for saving a lot of capital, a lot of infrastructure, and a lot of people. Thank you. [tr:trw].

See more of Rafi Farber on their Public Channel and the MPN Rafi Farber channel.