“Silver, in particular, has the potential to outperform gold significantly. For example, in the wake of the global financial crisis, the gold-to-silver ratio plummeted from 80:1 bottoming at 32:1, with the silver price topping out at ~$50/ounce. Recently the ratio hit a record 93:1, while the price is sitting at around $16/ounce. Yesterday, the ratio stood at 89:1 as shown in Figure 2.
This leaves significant room for silver to run. The annual silver market is only about $15 billion of value, and it does not take much to move silver’s price. Silver demand is already making a stealth comeback with the U.S. mint reporting a 43% increase in silver coin sales year-to-date as of June 30 and with ETFs gathering steam. If this investor interest continues, it will definitely push the silver price higher. (Sprott)
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Sprott has always been bullish on precious metals and Eric Sprott himself has been instrumental in funding a wide variety of gold and silver plays. It is interesting that Sprott media sees silver as outperforming gold in the mid-term.