Have you checked out Eric Sprott’s most recent comments on possible $200 an ounce silver? If you think this is a joke, then think again.
As you know from my previous posts, I love the yellow and silver metals. Is it because I want to be “bling blingin” some flashy stuff around town?
I just want to be as prepared as possible for the massive economic collapse that I believe is coming in the next few years (or even possibly months depending on how you look at it).
Originally, there was some debate over whether or not we would be experiencing an inflationary or deflationary period over the next few years because physical bullion is a better hedge against inflation and hyperinflation.
But with the most recent announcements of QE3 and now QE4, this pendulum just swung MASSIVELY towards the inflationary side. Like in a big, big way.
One thing that Sprott points out in his interview that I love is that he is happy that hardly anybody is reporting silver bullion in the mainstream media. They talk about gold all the time, but you don’t ever hear a peep about silver.
And why is this important?
Because it means that nobody is realizing the big potential upswing for silver. Savvy investors are, but not the mainstream public.
As I type this, the rough ratio of gold to silver is a littler over 50:1, that is 50 ounces of silver are equivalent to 1 ounce of gold. Traditional ratios throughout all of history puts the ratio at about 15:1 to 10:1. I won’t go into many, many other facts about why I believe this will go through the roof, but let’s just stick with the ratio stuff here.
So Sprott throws out this gem….in 2 years, if gold is $3,000/oz and the silver to gold ratio is at 16:1, that makes for $200 per ounce silver. As of today, you can pick silver up for about $33/ounce.
Do you now see why Eric Sprott talks about possible $200 per ounce silver?!
I never really got into Sprott’s stuff too much in the past, but now he is on my radar. I will be revisiting his statements more in future posts.
Let me know your thoughts by leaving comments below.
As for a starter to your education about this stuff, I highly suggest checking out what Mike Maloney has to say.
Until next time…
Dr. Timothy Lawler
P.S. Owning precious metals is badass. But so is learning how to release your inner badassness. Enter your email address here and learn how to earn extra cash to afford some precious metals, all while releasing your inner badass. Didn’t think it was possible, huh?! Yeah, it is. So do it now!