goldThe one year gold price chart shows that the US has been on a de facto US dollar gold standard for over a year now.
This means that the US dollar gold price has been “fixed” for all practical purposes at about $1,300.
This is big news since President Nixon closed the “gold window” back in 1971.   “Gold window” simply means people and governments can exchange a fixed number of US dollars for each troy ounce of gold.
Now after more than 40 years, the US has re-instituted a new “gold window” dollar gold-standard. 

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Submitted by Deviant Investor

Silver has no counter-party risk. It is not someone else’s liability. The same is NOT true for hundreds of paper currencies that have become worthless, usually because the government or central bank printed them to excess to pay the debts of governments that did not control spending.

Since Nixon “closed the gold window” on August 15, 1971 and allowed the dollar to become an unbacked paper currency that could be created in nearly unlimited quantities, the gold to silver ratio has ranged from a high of approximately 100 to a low of approximately 17.
There is room for silver prices to explode higher, narrowing the ratio to perhaps 20 to 1. When gold reaches $3,500 (Jim Sinclair) and subsequently much higher in the next few years, and assuming the ratio drops to approximately 20 to 1, the price of silver could approach $200 per ounce, on its way to a much higher number, depending on the extent of the QE-Infinity “money printing,” panic, hyperinflation, and investor demand.