Gold-to-Silver Ratio: What It Is, Why It’s Falling, and How Investors Use It

How investors use the gold to silver ratio for trading

The gold-to-silver ratio tells you how many ounces of silver it takes to buy one ounce of gold. When it falls, silver is gaining ground. Here’s why investors watch it and what the current ratio means.

Is Owning Precious Metals Legal?

On April 5, 1933 President Franklin Roosevelt signed Executive Order 6102 which outlawed the private ownership of gold by citizens.

For a duration lasting 41 years in the mid-20th century, the government made it a crime for the people to own, hold or transact in sound money.

Following the resignation of Nixon, one of the first laws signed by President Ford included a bill which reversed Roosevelt’s Executive Orders.

It has been legal for anyone to own, hoard, buy and sell gold in the United States since December 1, 1974.

Gold Jewelry as an Investment – 24k Gold Jewelry

24k gold jewelry - 1 troy ounce bracelet

Just as with other forms of precious metals, such as coins, bars and rounds, investing in 24k gold jewelry makes practical sense. Jewelry made from 24k gold makes an excellent store of wealth. The value of the jewelry is not diluted by outrageous retail markups and the use of alloys to reduce the purity.

Anyone crossing international borders is required to declare any financial instruments valued at over $10,000. Jewelry made from 24k gold isn’t a financial instrument and in most cases does not need to be declared when traveling internationally. It’s possible that an individual could carry more than $10,000 worth of 24k gold jewelry while traveling.