Why silver is less speculative than gold

February 18, 2013

The market price of silver today is just under $30/troy oz.  The constitutional silver dollar price of silver is

480/371.25 = $1.292992929/troy oz.   This gives and implied CPI of 30/1.29293 = 23.20 which is close to official figures.  I conclude that the silver price is consistent  with CPI inflation.

The constitutional price of gold is 480/24.75 = $19.3939/troy oz.     19.3939*23.2 = $449.94/troy oz.

As the current market price for gold is slightly over $1600/troy oz. , I conclude that $1600 – $450 = $1150/troy oz.
of the price of gold is speculation on future inflation.

Warren Raftshol


One response

  1. Hi there! This post couldn’t be written any better!

    Looking through this article reminds me of my previous roommate!
    He always kept talking about this. I most certainly will forward this
    article to him. Fairly certain he will have a good read.
    I appreciate you for sharing!

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