In today’s unpredictable economic landscape, protecting your wealth and financial security has never been more important. At ITM Trading, we specialize in helping individuals safeguard their retirement and financial future through tangible assets like gold and silver. One of the critical tools we use to provide insight into the health of the US dollar and overall economy is the US Debt Clock.org. In this final chapter of our series, we’ll explore the dollar to gold ratio and dollar to silver ratio—what they mean, how they are calculated, and why understanding them is crucial for preserving your wealth.

Part One: US Debt & Your Cost
Part Two: Interest, M2 & Time Machine

What Are the Dollar to Gold and Silver Ratios?

The dollar to gold ratio is a measure that compares the year-over-year increase in the money supply to the annual increase in gold production. Essentially, it helps quantify the amount of fiat currency being printed relative to the amount of gold being mined. Given that gold is a finite resource—approximately 85% of the world’s gold has already been mined—this comparison highlights the stability of gold as an asset versus the seemingly unlimited creation of US dollars.

The dollar to silver ratio follows a similar calculation, measuring the expansion of money supply relative to the production of silver. Historically, silver has mirrored gold’s role as a store of value, and the growing divergence between these ratios signals a loss of confidence in fiat currency.

Why These Ratios Matter

These ratios are not just abstract numbers—they reveal a deeper relationship between fiat currency and true forms of money like gold and silver. Gold, unlike the US dollar, cannot be created out of thin air. Its production is limited by natural supply constraints, which contributes to its long-term stability. On the other hand, the US dollar is continually devalued as the government prints more currency to meet growing debt and spending obligations.

In 1933, when the United States adhered to the gold standard, there was a stable relationship between the dollar and gold. However, abandoning this standard allowed for the unrestricted printing of dollars, leading to the inflation we experience today. The data from US Debt Clock.org clearly illustrates this growing disparity. When you examine the 5-year and 10-year averages, you’ll notice that inflation continues to erode the purchasing power of the dollar while gold and silver hold their value.

The Implications of a Growing Money Supply

As these ratios increase, it becomes evident that the continual rise in the money supply is devaluing the US dollar. Let’s take a closer look at the numbers: In 2000, the average price of a new car was $22,000. Today, that same car would cost over $49,000. Likewise, the median cost of a new home has more than doubled from $167,000 to over $400,000. Yet, the median household income has barely budged, rising from $32,000 to just $39,000.

These disparities paint a clear picture—wages are not keeping up with inflation, and the purchasing power of the dollar is steadily declining. This ongoing trend underscores the importance of diversifying your wealth into physical gold and silver, assets that can provide a hedge against inflation and protect your financial security.

Why You Need Physical Gold and Silver

Physical gold and silver serve as an insurance policy against economic uncertainties and the unchecked printing of dollars. Unlike fiat currencies, gold and silver are assets that exist outside of the government’s financial system. They are not subject to devaluation through reckless government spending or monetary policy decisions.

By owning physical gold and silver, you can protect your wealth from the looming threats of inflation, economic collapse, and government overspending. As these ratios from US Debt Clock.org continue to climb, so too does the urgency for safeguarding your financial future.

Taking Control of Your Financial Future

If you’re concerned about the ongoing devaluation of the dollar and the risks posed to your wealth and retirement, it’s time to take action. At ITM Trading, we empower our clients with data-backed insights and tailored strategies to protect their wealth. Our expert analysts are here to help you develop a customized plan that fits your unique financial goals.

To get started, click on the link below to schedule a meeting with one of our analysts or call us directly to discuss how you can secure your financial future with physical gold and silver.

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