Zijin takes control of Pan American’s gold mine in Peru
Pan American no longer owns the mine but retains the right to 60% of future copper concentrate from La Arena II.
Silver demand is galloping far ahead of available supply, said Eric Sprott at a Casey Research summit early this year.
High demand at mints and newly created silver ETFs means that silver has to go up.
“We get roughly 700 million oz. from the mines and let’s say we get 200 million from recycling,” says Sprott.
“We can identify changes of 380 million oz. in a 900 million oz. market that have happened in the last five years.”
Sprott, who notes that the roughly half the silver produced each year goes to industrial uses, says that demand is going to “overwhelm” sellers sooner or later.
He notes that in the last year amount of dollars paid for gold at the mints is the same as the amount paid for silver.
“The ratio of sales in dollars of silver to gold is now one-to-one. The mint sells as many dollars of silver as dollars of gold. The price is 50-to-1, which means they are selling 50 times more volume than gold.”
“The current ratio is 52:1. I am ready to throw up when I look at that, but what an opportunity.”
4 Comments
Stephen
Eric is a trailblazer in the understanding of Gold and silver as alternative REAL
money to fiat currencies everywhere….As his research report poignantly stated 4 years ago two words…….BUY GOLD.
( it could have been several thousand words and you tell me alan was he wrong )
Allan f
I would trust Eric sprott with my money any day! Plus he is only stating the facts….
alan
Don’t believe this guy. I do beliieve silver will go up, but i don’t trust this guy. I would say it will probably remain flat for awhile if he says it is about to rally.
david finch
I do believe this guy, and Alan I hope you are right(about silver staying flat for awhile). I’m not rich or wealthy so I need all the time I can get to consume as much silver as possible. I don’t plan to get rich quick with it(silver), however I will make a nice retirement in the long term investment. It never loses value unlike paper.