Since the 1879 gold standard was established in America, the US dollar could be directly redeemed for gold within the banking system. This continued even after the Federal Reserve was created and until it was ended for citizens in 1933.

In such a system, the measure of actual gold held by the banking system ( the true monetary base) versus the gold certificates (paper dollars but measured as the monetary base) with which gold could be redeemed is a relevant measure of how well the banking system is capitalised.

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Thursday, February 27, 2025

There Are Some Bullish Indicators in the Silver Market / Commodities / Gold & Silver 2025

By: MoneyMetals

Silver has quietly had a strong start to 2025, with the price up 12.6 percent. However, it remains significantly underpriced compared to gold from a historical perspective with the gold-silver ratio still above 90-1.

The gold-silver ratio tells you how many ounces of silver it takes to buy one ounce of gold given the current spot price of both metals.

While industrial demand has a much bigger impact on the price of silver than gold, silver is still fundamentally a monetary metal and its price tends to track with gold over time. The gold-silver ratio reflects this relationship.

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