Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
John Embry, chief investment strategist with Sprott Asset Management, believes silver prices will go “ballistic” as demand massively outpaces supply while investor demand builds due to dwindling above-ground sources.
Speaking to King World News Embry notes that over the past half century billions of ounces in above ground silver have been consumed, with the precious metal serving as both as investment holding and key industrial material.
According to Embry demand far exceeds the amount of silver coming out of the ground or silver being recycled, and prices are set to go “crazy” as the skewed supply-demand relationship unfolds.
Although Embry remains immensely optimistic about gold and foresees a raging bull market in both gold and silver, he also expects the gold-silver ratio to decline as is typical during strong periods for precious metals.
