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 hey everyone welcome to bald guy money I am bald guy and in last week's video I answered or should I say attempted to answer this question from a viewer asking me about the gold to Silver ratio now I interpreted this question as asking what I think the best gold to Silver ratio to stack at is to which I answered 40 to one 40 ounces of silver for every 1 o of gold but many of you noticed that I likely misinterpreted the question in that Mr fips who is currently stacking at a ratio of 100 to1

was asking at what ratio he should actually convert the silver he has Into Gold so in this video I will Rectify that misinterpretation and give you all a detailed breakdown of how I view the gold to Silver ratio by talking about what is driving the widening Gap in the price of gold gold versus silver what I think a realistic ratio between the two should be at what ratio I would personally convert my silver into gold and I will conclude with some points on what I think about this trade in general

now just before we get started if you're in the USA and looking to buy some gold or silver at a great price from a reputable dealer please check out channel partner pinck with the recent pullback in the price of silver they are now offering these wonderful 1o silver bars for as low as $24.90 a piece I think this is a great product for those of you looking to get your weight up a bit and I will leave the link to this deal in the video description below and if you want to see what other great prices they've got go

to pin.com or call them at the number on the screen they can also help you out with setting up a gold and silver IRA without the predatory fees or high spreads between buy and sell prices just remember if you contact them please tell them you came from bald guy money so getting back to the gold to Silver ratio I know many of you watch it closely and are looking for an opportunity to convert some of your silver into gold and maybe you purposely built your stack in that way because you have been expecting this opportunity to come or

maybe you just got carried away buying silver because of its relative affordability versus gold and feel like you want to take advantage of Silver's volatility to find a window to get into an asset that is a bit less volatile and has a better track record in yielding inflation adjusted returns as is the case with gold well no matter what that reason is I think it's important for us to quickly review the current gold to Silver ratio and have an honest discussion about what is driving its

performance right now because as you can see here on this chart we have had some wild fluctuations since 1971 when the new rules of money came into effect with ratios as low as 15 to1 in December uh 1979 going all the way up to5 to1 in April 2020 but in all that Madness there is an important Trend emerging that gives us a good indication of what we may expect the next time we see a major change in this ratio in favor of silver and that is the fact that this Gap is widening in fact since 2020 the Gap is an average of

82.2 O of silver for every one ounce of gold whereas that average since 1987 has been about 69.2 and where gold really started to make its biggest gains was in the Years following the 2011 medals blowoff top and this is for good reason because that is the moment the world really lost faith in the US dollar as the global Reserve currency now I know Andy sheekman makes a good case that the recent botched pull out from Afghanistan triggered this loss of faith in the United States but from my point of view

that simply accelerated it and why I say that 2011 is the real moment the world lost faith in the USA and the US dollar is because that is the moment when central banks became net buyers of gold again after more than 20 years of selling it mind you they looked at all the chaos caused by the US financial crisis how it spilled over into Global Financial markets and said we need to hedge ourselves against this risk because the next time this happens the United States will predictably print more money devaluing the dollar reserves

that we currently hold and sure enough when c19 came around and you can argue that it wasn't a financial crisis but it triggered more US dollar printing contributing to a massive level of inflation all around the world it also drove up US national debt from $4 trillion in 2011 after the financial crisis to a whopping $34 trillion today proving that the central banks of the world were correct to start stacking gold to to hedge against the US dollar and the risks associated with it but more importantly this solidified a

massive inflow of central bank money into gold inflow that has directly contributed to the widening gap between the prices of gold and silver because one thing you all have to keep in mind is that central banks do not hold silver in reserve the same way that they hold Golden Reserve and that means silver has not benefited from these large inflows of cash coming from central banks and since an asset's price is determined by the amount of money flowing in or out of it and I say that as we look at a list

of the top 10 assets ranked by total market cap right now that means for the gold to Silver ratio to make a significant change that favors silver in that ratio meaning the price of silver grows faster than gold and makes the silver to gold rate ratio trade actually make any sense we would have to see money flowing out of gold and into silver which if we look back at the period from 1990 to 2010 when central banks were net sellers of gold that exact scenario took place and it brought the silver to gold ratio down from

nearly 100 to1 to 65 to1 but this scenario is highly unlikely right now because that would would mean central banks have to start selling gold and considering how bad the dollar looks right now and I don't care if you call it the nicest horse in the glue factory central banks of the world are making a concerted effort to get away from the US dollar and we can see that as the global dollar reserves slowly shrink while gold reserves are increasing which means selling pressure on gold will remain low

for the foreseeable future and Gain s in the ratio for silver will have to come from inflows that outpace inflows to gold which I think will happen but not at the rate many of you are expecting so considering all of that information I don't think it's reasonable to expect a 15:1 ratio a 10:1 ratio or especially on the extreme end of things a 1:1 ratio where the price of silver and gold in US dollar terms are equal to each other and that's because there simply will not be enough inflow going in the direction of

silver and the biggest buyers of gold central banks have a lot of money and are still throwing it in the direction of gold and that's why I think a realistic expectation would be for us to reach a 60 to1 ratio closer to the February 2021 level where 60 o of silver is equal to the US dollar value of 1 ooun of gold and if I was playing the gold to Silver ratio which I'm not and I will say why in a moment that is where I would make my trade at 60 to1 now I know many of you are probably typing in the

comments section right now that I don't have any idea what I'm talking about that the gold to Silver ratio used to be or the silver to gold ratio used to be uh 20 to1 or that it's coming out of the ground at a ratio to 7:1 etc etc and these are things that I don't disagree with but hear me out because I want you all to consider whether you agree with what I'm saying or not and really only time will tell who's right but basing your investment assumptions because let's face it many of you are treating

this as a pair trade or a swing trade which puts it in the realm of investing basing those investment assumptions on the return of the gold to Silver ratio to some historic level that existed before 1971 when the US went off the gold standard and Robert K asaki's famous new rules of money came into play means you are basing your investment thesis on Norms that were arbitrarily decided by Kings and rulers with no consideration given to real modern world demand as it relates to the new rules of money and

that is not a good way to invest if you ask me it's like investing in buggies because you think the horse and buggy are going to make a comeback based on their historic popularity it's not likely and I'm not saying it's impossible I'm simply saying it's not likely now the second consideration I want you to think about is that you have to remember that Financial inflows to gold from central banks are not based on the price of gold they are based on a real need to build a balance sheet

position in an asset that does not have counterparty risk like the US dollar does therefore the demand for the foreseeable future is rather in elastic or not impacted so much by the rising price whereas silver although it has growing industrial demand and I think the price of silver will get a larger bump in 2024 than the price of gold in percentage terms and I'll show you that in a moment silver doesn't have buyers like central banks stacking it out of necessity meaning that as the price of

silver reaches higher levels more sellers will enter the market sellers that don't exist in the same way on the gold side of things finally I want you all to consider the premiums that we all pay dealers for metals because for those of you wanting to make this silver to gold trade you are already in a 133% hole at best considering the premium you pay for silver when you buy assuming you sell it back at spot price and the additional premium any dealer is going to charge you on the gold when you make

the trade because dealer isn't going to look at the ratio uh on any given day and make the trade for you at spot price and that's why I said in last week's video If you're looking to get a better ratio between gold and silver I think it's best to Simply adjust your gold purchases to increase them versus how often you're purchasing silver to get that better ratio one that's closer to my 40 to1 ratio that I think makes more sense in order to get a more balanced exposure to these medals as opposed to

relying on a major ratio change in order to make this trade to strike that better balance now does that mean I'm bearish on Silver no it doesn't at all and if you're a regular viewer of this channel you know that's not true and here are my 2024 price targets to prove that I think silver will have a better year than gold in 2024 but what this does mean is that I am looking at supply and demand Dynamics realistically I'm considering facts like growing industrial demand for silver I'm

considering the real possibility that silver will be substituted for gold in many jewelry purchases as it becomes too expensive for most consumers and I'm also considering the fact that silver Supply will eventually become tight as past surpluses are depleted in the wake of silver deficits which have existed since 2019 and what what I'm balancing those facts against is the fact that as price runs up driven by these factors more silver sellers will enter the market whilst the largest gold buyers

central banks are not going to be unloading their reserves anytime soon because as I said they need them on their balance sheets to replace the dollars they're trying to get off of their balance sheets so Mr fips I hope I understood your question correctly this time and remember for any viewers out there if you have questions of your own that you want covered on this channel take a moment right now to drop them in the comment section I cover one question every video I do and you never know yours may just be the next one and for

those of you looking to accelerate your investing strategies in 2024 or your stacking saving strategies whether it's something as simple as tracking profit and loss on your Metals purchases in multiple currencies tracking the best moments to buy and sell gold and silver or you want to calculate how much gold and silver you need to have to fund a nice retirement check out my patreon it doesn't cost much it's only $9.99 a month and you can cancel at any time after joining and a lot of my patrons

will say they saved more money from being a member than it cost them for the membership and I will leave the link to join in the description and pinned comment below but this is just a message for all of you that I've updated all of my tools for 2024 and if you want access to them you can join and get access to them now and with that said that's it for this video I'm wishing you all a fantastic day ahead please remember to take care of yourselves and take care of each other and until the next time we

see each other everybody goodbye