Silver Will Go Much Higher

Source: MoneyWeek, Dominic Frisby (10/20/10)

". . .but take some profits for now."

Silver is the precociously gifted, but errant teenager of the commodities markets.

I doubt that there's any other commodity with as much potential. And it's a potential that many 'talent scouts' have long since identified.

So why should you take some silver profits now? Take a look at the gold:silver ratio, which measures how many ounces of silver it takes to buy an ounce of gold. When gold and silver have had a good bull run, this ratio tends to fall quickly and dramatically. The opposite seems to occur when gold and silver are falling. This is because silver tends to rise by more and fall by more than gold. It is the more volatile of the two metals.

But when that ratio spikes down to the 45:55 area, the evidence of the last 10 years shows that you should be looking to take some silver off the table, with a view to buy back when the ratio rises. Eventually, I think this ratio will fall a lot further. In terms of supply, there is 15 times as much silver in the earth's crust, and 15, or so, to 1 is the old monetary exchange rate; I expect one day to see something like these levels again.

Please cast your eye over the chart below. The silver price is above and the ratio is below in green. I have circled the major highs for silver. You can see they occur just as the gold:silver ratio spikes down.

$SILVER

We are seeing just such a spike down now. We may have just a little further to go, perhaps to 55, where the ratio would hit that trendline I have drawn, but this is a spike that is starting to look concomitant with previous highs in silver.

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Latin America: Six Gold Juniors Amass 100M+ Ounces
Source: Marc Davis, BNW News (05/25/2010)

Latin America, the world's last great mineral frontier for prolific gold discoveries, is proving a godsend for some lucky investors.

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."

I haven’t spoken to my old mining stock friend, noted and universally respected gold stock guru, Bob Bishop, about Rare Element in a year, but I hear he is still a supporter and very large shareholder. I don’t believe he will hold it against me to remind you that this was one of his favorite holdings when he left the newsletter writing business. . .

It's Only the Beginning for Uranium
Source: www.financialinsights.com (06/03/2005)

Dr. Richard S. Appel, author of Financial Insights, first became bullish on uranium in mid-2003, when it appeared obvious that its supply versus demand equation was fated to seriously drive higher its price. Since then, a series of events in the uranium industry has led Appel to believe that uranium prices will reach never before seen levels.

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