No one else has said this and it's either because they don't see it or don't understand it but when the Central Banks around the world declare war on their currencies, they are going to win that war. For all practical purposes, the Fed has issued a double your money back guarantee for all resource stocks. They are doing everything in their power to make resources stocks leave Tesla, Apple and Hertz shares in the dust. And it's a little tiny room with a little tiny door and when everyone wants in at the same time, it's going to get both interesting and profitable.
Silver is absurdly priced today. The silver/gold ratio was 95-1 before the ratio went crazy in March. The 95-1 was the highest ratio since 1991 when it hit 100-1 for a short period. Silver relative to gold was absurdly cheap BEFORE the markets blew up. When the financial world cratered in March the silver gold ratio touched 133-1 intraday, which is the highest it has ever been in 5000 years of history.
It has returned to reality and is back to 95-1. That is just stupid and it will go lower. I am not one of the silver nuts who believe the ratio will go to 17-1 or 10-1. The only way out of this financial hole the idiots in Washington and every other central bank have excavated is to return to honest money. In a gold-based system, you need more silver than gold. You can't buy a loaf of bread and a quart of milk with a one gram gold coin. The coins everyone will be using will be silver.
Defiance Silver Corp. (DEF:TSX.V) was an advertiser before. They have a wonderful silver project in Mexico named San Acacio. I wrote about it before two years ago. The company has new and aggressive management who think the time is right for them to get serious about exploration. I totally agree. They are about to begin a fully permitted 5,000-drill program at San Acacio. If they don't hit a lot of silver I'm going to recommend to the Mexican government that they be shot at sunrise.
In addition Defiance has a 100% company owned gold/copper project named Tepal. The project has a 4 million ounce low grade gold 43-101 and has had a PEA done on it. That makes Tepal gold worth about $12 an ounce. That seems cheap to me. Gold is going to go up a lot as the US eases into a hyperinflation that few now recognize. In hyperinflation you can only preserve your money in resources. And it and when gold heads for a moonshot, you want the most leveraged gold project you can find. That would be Tepal. They are moving Tepal forward at the same time as San Acacio so investors will see a steady flow of news from either one or the other projects.
I am biased, Defiance is an advertiser. Do your own due diligence.
Defiance Silver Corp
DEF-V $0.33 (Jul 15, 2020)
Bob Moriarty founded 321gold.com, with his late wife, Barbara Moriarty, more than 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.[NLINSERT]
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