Dow Silver Ratio: The Dow Jones versus the Silver Price

Dow silver ratio

The Dow-silver ratio then rose again, climbing to over 750 in the mid-1960s. It then fell to 15 in the early 1980s due to inflation and as a result of the Hunt speculation. The downturn in precious metal prices caused the ratio to rise to a record 2400 in 2000 together with the New Economy upswing. Since then, the ratio has dropped significantly again. In October 2012, it was only 400 and thus already below the level of the long-term average of 470.

Dow Silver Ratio

Source:  Own calculations and presentation based on data from Markt-Daten.de (internet retrieval, dated 01.06.2012).

High: 2,550 (07/06:2001)

Low: 23 (01/1980)

Since the turn of the millennium, the silver price has thus once again decoupled itself from the development of the Dow Jones Index. In addition, since then the U.S. dollar has been strongly devalued and the current account deficit, the debt and the money supply of the U.S. and other countries have been massively expanded. If the trend of more pronounced highs and lows continues, the Dow-Silver ratio would have to fall below 15 at the peak of the current precious metals cycle.

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