Gold and silver have been used as money for millennia until relatively recently. But, even though they have a historical connection, the current fundamentals of each are very different. Following are some facts:
| Gold | Silver |
| There is an estimated 6 billion ounces of above ground gold. | There is an estimated 2 – 2.5 billion ounces of above ground silver bullion in 1000 oz. bars which is the main form used for silver users and investors. About 25 Boz. total in all forms. |
| Gold has a market value of about $11.6 trillion (at $1940/oz) or about 200 times the market value of silver. | This stockpile of silver has a value of $54 – $68 billion (at $27.10/oz.). |
| A small percentage of gold gets consumed each year for fabrication/jewelry | Silver is consumed in industry. About 75% of the silver mined for the last 9 years has been consumed with only about 18% of the supply being recycled. |
| Recently (09/20), the gold/silver ratio has been running around 70:1 and was over 120:1 in March 2020. | Historically, the gold/silver ratio has been much less. Think of the $20 gold piece and the silver dollar- about 16:1 due to the metal weight differences. This is also one of the only disadvantages of silver is that it is heavier per value by that same ratio. |
I think that gold will do well in the foreseeable future, but I think silver will do even better. I see commentators saying that gold is going to $5000 per ounce and higher and they may be right. But, historically when gold goes up the gold:silver ratio goes down. In 2011 when silver hit almost $50/oz. the Au:Ag ratio was at 31.5:1. So, if gold goes up to $5000/oz and the ratio is 31.5:1 then silver will be $158/oz.