The story of gold and silver is central to the history of money and world monetary resets. Gold and silver are the highest forms of money; therefore, this is to be expected.

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Just like historical interest rates tell the story of monetary resets (part 1), the gold/silver ratio is also a witness in its own right.

From a macro point of view, the gold/silver ratio tells an interesting story about the demonetization of silver as the beginning of this journey of monetary manipulation, which led to a highly indebted world in need of reform.

The worldwide introduction of the gold standard (1879 in the US) was a key part of silver’s demonetization, especially since a bimetallic system existed prior to that. When silver was no longer considered a big part of the monetary base, it eventually ended up on the market, pushing down prices.

Most commerce took place with silver, but the demonetization (especially the use of paper dollars) caused fewer transactions to take place with silver. Technology played a major role in this, with the invention of better and cheaper printing and paper manufacturing techniques in the 1800s.

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