170.)īased on these tables, I calculate the following Copper/Silver ratio values for various years from 1900 to 1990: (Table courtesy of the USGS's Metal Prices in the United States Through 2010, p. The following tables of annual copper and silver prices allow us to calculate the Copper/Silver ratio over the course of the 20th century: The Copper/Silver Ratio in the 20th Century Both, however, are industrial metals, and both tend to rise in value when global industrial production is growing. Silver has had more value as a form of money and store of value as a precious metal, while copper has been used as a less valuable form of money but mainly as an industrial metal essential for the production of manufactured goods. Silver and copper, however, seem to have stayed relatively balanced with each other in terms of their relative supply and demand levels and dynamics over the course of human history. This is a contrast to many other ratios and indicators: For example, we know that the Gold/Silver ratio was in the 10/1 to 16/1 range for much of human history, but the relative value of silver declined significantly when massive silver deposits were discovered and mined in Nevada and the American West in the late 19th century, increasing the supply. What is remarkable is that my research reveals that this broad range of the Copper/Silver ratio, from around 0.10 or slightly below it to around 0.30 or somewhat above it, has existed and held for many thousands of years, from ancient Egypt to ancient Rome to the Byzantine Empire to the 20th century and up to the present. The chart shows a distinct range, from lows around 0.10 or even below it at periods of peak enthusiasm for silver and precious metals, like 2011, to highs above 0.30 when global industrial demand for copper and base metals is very strong, like 2006. (This is the ratio of the standard copper price per pound ( JJC) ( JJCB) ( CPER) ( CU) to the standard silver price ( SLV) ( PSLV) ( SIL) ( SILJ) per troy ounce.) With inflation exceeding the BOJ's target, markets are simmering with speculation that Ueda will phase out his predecessor's massive stimulus that has drawn criticism for distorting markets and crushing bank profits.Here is a chart of the Copper/Silver ratio over the past three decades, from 1990 to the present: ![]() What's important is corporate price-setting behaviour, which is somewhat overshooting expectations," he said. "But there is various uncertainty surrounding the inflation outlook. Ueda said the BOJ currently expects core consumer inflation to slow below the bank's 2% target in the latter half of the current fiscal year. In a positive sign for consumption, average summer bonus payments this year are likely to rise 2.4% from year-before levels, think tank Teiko Data Bank said on Friday.īut there is uncertainty about whether companies will keep raising wages, after agreeing with unions to hike pay at levels unseen in 30 years. The economy has held up so far, expanding by an annualised 2.7% in the first quarter on robust capital expenditure. Inflation-adjusted real wages fell 3.0% in April to mark the 13th straight month of declines in a sign the rising cost of living was squeezing households' purchasing power. Japan's core consumer inflation hit 3.4% in April, exceeding the BOJ's 2% target for over a year, as companies continued to pass on rising raw material costs to households. The BOJ is expected to maintain ultra-loose policy next week, sources have told Reuters, as it focuses on supporting a fragile economic recovery to sustainably hit its price goal. As such, we will patiently maintain our monetary easing policy," Ueda told parliament.īy supporting the economy, the central bank aims to generate a positive cycle in which inflation-adjusted wages will start increasing, he added. ![]() "There's still some distance to sustainably and stably achieve our 2% inflation target. TOKYO, June 9 (Reuters) - Bank of Japan Governor Kazuo Ueda said the country's corporate price-setting behaviour was showing changes that could work to push up inflation more than expected, suggesting the economy was making steady progress toward hitting its 2% price target.īut he stressed anew the central bank's resolve to keep ultra-loose policy, to ensure companies raise wages enough to more than offset the burden on households from rising inflation.
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