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In February of this year – just before the “LEAP DAY VIOLATION”; “ADMIRAL SPROTT” reiterated his clarion call for silver…

Almost every time I talk to a metals dealer I ask my favorite question; how much silver do you sell versus gold?  And every time, I get the same answer; as many dollars of silver as gold. Well, that’s impossible. It’s just impossible that people can keep buying silver at that rate, and we not end up with some type of shortage.

…which is probably why he deems it the “investment of the decade”…

Eric Sprott – explains why silver is an investment of this decade – June 2011

Like myself, Sprott focuses heavily on the gold/silver ratio; currently at 51, roughly in line with its average since the gold standard was abandoned in 1971…

Of course, the historical gold/silver ratio is closer to 15:1; principally based on the amount of silver/gold actually mined over the 500+ years.  Given the EXTREME shortage of GLOBAL, above ground inventories – currently estimated at no more than one billion ounces, most of which permanently sit in private vaults – Cartel efforts to suppress it have been GARGANTUAN.

Consequently, we have seen multiple instances of shortage in recent years; from late 2008, when the Cartel drove the PAPER price down; to early 2011, when prices exploded – catalyzing the “SUNDAY NIGHT PAPER SILVER MASSACRE”; and to a lesser extent in Fall 2011, following Cartel efforts to quash PMs after “DOLLAR- PRICED GOLD” achieved an ALL-TIME HIGH.

This is why COMEX “Commercial” shorting by JP Morgan and its henchman is consistently more than ANY other commodity…

…and why the LBMA obfuscates silver lease rates; to give an impression of plentiful supply…

Turk – The LBMA Is Moving To Cover Up Silver Manipulation

Sprott’s primary contention is it is simply not possible for the gold/silver ratio to stay at 50 when the dollar amount of PHYSICAL gold and silver buying is nearly equal.  Perhaps Sprott Money’s sales team is more biased toward its namesakes’ favored metal; however overall industry data supports his contention.

Below are the dollar value of PHYSICAL gold and silver purchases by the “big four” Canadian PM closed-end funds; Sprott’s Physical Gold Trust (PHYS) and Physical Silver Trust (PSLV); plus the Spicer family’s Central Fund of Canada (CEF) and Central Gold Trust (GTU).

As you can see, total gold offerings over the past three years of $3.1 billion are not even twice the $1.7 billion of silver offerings; the latter of which were actually higher in 2012…

As for the U.S. Mint’s Eagle program, the trend is nearly identical; as the $5.9 billion of gold sales over the past three years is less than 2x the $3.1 billion of silver sales…

Below I have combined the two tables; demonstrating how the “Gold/Silver Investment Ratio” has actually declined in the past three years; from 2.4 in 2010, to 2.0 in 2011, to 1.3 in 2012.  At Miles Franklin, we do not have detailed records of this breakdown; however, whenever we run into a shortage, it invariably is caused by silver…

I whole-heartedly agree that the gold/silver ratio will fall to AT LEAST its historical 15:1 average; and perhaps, significantly lower…

Eric Sprott: “Expect The Gold To Silver Ratio To Hit Single Digits”

…with the initial catalyst driving this decline being silver’s inevitable, permanent break above $50/oz…

…in what I have “pre-deemed,” the…

ULTIMATE QUADRUPLE TOP BREAKOUT

I, too, agree that PHYSICAL silver will be the “investment of the decade.”  However, given that silver is not an “investment” but REAL MONEY; it will likely do so with essentially NONE of the risks “investments” entail.

PROTECT YOURSELF, and do it NOW!

Call Miles Franklin at 800-822-8080, and talk to one of our brokers.  Through industry-leading customer service and competitive pricing, we aim to EARN your business.