The value of gold in terms of silver

Economics Economics Questions
1

So, back in the years preceding 1933, the government had $1.29 per ounce of silver (.77344 ozt per dollar) and $20.67 per ounce of gold. So, an ounce of gold was worth just about 16 ounces of silver.

Recent spot prices, however, have an ounce of gold equal to about 52 ounces of silver. In terms of the other metal, gold is now three times more valuable, or silver is three times less valuable, than it was in the 1860-1932 era. Does anyone know why this is?

Was the original government rate vastly different from the market rate? Or has production/consumption of these metals changed very significantly? Or something else?

2

That’s a good question. I am by no means an expert but I would think it has to do with the intrinsic value of the metals. Now that they are not currency gold probably has a wider range of uses and is more demanded than silver for whatever reason and when silver is not a currency, its demand greatly decreased. I could be completely full of it though.