The graphic above (click it for a larger view) charts three values:
- The yellow line is the London PM Gold fix divided by 10
- The gray line is the London Silver fix
- The green line is the quotient of PM Gold Fix / Silver Fix: the units of silver required to purchase a single unit of gold.
I may be oversimplifying, but it seems to me the ratio expresses the relative value of silver to gold. The smaller the number, the fewer units of silver it takes to by a single unit of gold, the more value a given unit of silver has with respect to gold.
As of todays fix it would take about 50 oz. of silver to buy 1 oz. of gold.
