Gold / Silver Ratio since 1792 until 2005

The "decline" in the gold / silver ratio in the 1860's is due the depreciation of the paper dollars used during the Civil War. The gold / silver ratio was not changed during this period compared to pre-war ratio of 16 against 1. It is a statistical error.

In 1870 with the "demonetization of money". The progression of a monetary system based on paper and bank transfers etc. eliminated the use of small silver coins. You could use a $ 1 bill instead.

In addition, the money ceased to be used as commodity money. Silver became an industrial raw material while retaining some monetary characteristics.

From the mid-1870s, the value of silver began to vary widely compared to that of gold for the first time in history.

Geir Solem

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