Is silver under priced?

I read some article that the usual ratio of gold to silver, over the last few centuries, has been about 40 to 1. Right now, gold to silver is about 75 to 1. Silver should about $40 an ounce right now. Silver is kept low on purpose, if anyone can tell me why and when silver will rebound, let me know? I think that the powers that be do not want the middle man to be player in the economy.

If silver were worth more, no one could stop it. The way it works is supply and demand, sure people have pushed it this way and that way, but they can’t keep it down for this long.
I think it has a lot to do with the good economy right now. People are not afraid so they don’t need a hedge to their currency’s.
If you feel like it should be worth more than buy as much as you can. When it hits $45 think about selling. But if you sell at $45 don’t feel bad if it hits $90 before it comes back down.
There’s a good chance it will hover around $16-20 for ten more years. Just look at the fifty year chart, there’s a bit of a trend. However if the market tanks next year, you will see metals go back up.

But it’s a commodity so it anyone’s guess. Lots of different things can effect it, some things the big dawgs can sway and some they can’t. You just have to be ready when it happens.

The gold silver ratio was around 9 to 1 during the Middle Ages. New supplies of silver from the New World pushed that ratio to 16 to 1, which held well into the 19th century. A silver crisis in 1873 caused the ratio to increase further to around 20 to 1, and with most currencies tied to gold at that time this meant an overall decrease of price levels, also known as deflation.

After World War 2 the gold silver ratio had increased to 35. But in 1980 silver reached $50 per troy ounce (31.1g) while gold spiked to 'only' $1000. It was the bitcoin of its time, with people speculating that paper money would fail and that central banks would restore a gold and silver standard. Instead, interest rates went sky high and all precious metal bulls lost their shirts. Silver was hurt more with the ratio crossing 50.

The commodity supercycle of the 2000's and the Global Financial Crisis of 2008 brought silver back into the spotlights. It reached a high in 2011 at $50 and the ratio reached 35. A subsequent correction halved silver prices compared to gold.

Apparently there is more than enough silver supply to meet demand, even at current prices of $16.

1 gram of silver got you a barrel of potatoes in 1870's. <-- 25 PENNIÄ silver coin. It was much more worth than now.

10 grams of silver was 2 markkas. 50 grams of silver was as much as the 10MK gold coin that was worth 3g gold.

1 gold gram was as much as 16 silver. If we count how much potatoes a gram could get...A lot.


But 1 gram of silver wont get much potatoes today. The price of silver has lowered very much.

I have lately acquired many Finnish 100 markkaa silver commemoratives as the prices are quite cheap now. I don't hoard though, just buy only one example of each km#.

At least those are "undervalued" as they sell 6-8 euros below face value (~€ 17) now. Their exchange to euros ceased in 2012 and current market value in many cases is silver value + 0-2 euros per coin.

I haven't been a big fan of commemoratives before but as I can get beautiful silver coins at these prices...