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

Tyler Durden's picture

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Josh Randall's picture

Lookin' for another dip to buy

Cash_is_Trash's picture

Sounds like a great day to go shopping! I like the miners; UXG and SSRI.

Sound money, bitchezzz

centerline's picture

Great site Turd.  I stop by daily.

TheGoodDoctor's picture

If we are lucky we can stop by more than once daily. :)

Josh Randall's picture

Roger - good insight as always Turd

Long-John-Silver's picture

You missed it a couple of hours ago... Silver is now $45.04

smlbizman's picture

it really pisses me off watching these cnbssholes telling everybody about the silver story...thankfully the sheep wont respond yet...and they wont be buying because it is so expensive...but i was much more comfortable with the private party we had going on.... 

lolmao500's picture

Gold will crash then? - Geithner

Problem Is's picture

"Gold WILL crash." Timmay Jeethner

lolmao500's picture

BTW, there's big rumors China will reevaluate their currency by 10% this weekend... Silver is gonna go up even more if that happens.

Tyler Durden's picture

There is almost but not quite a 0% chance of that happening.

Sudden Debt's picture

that would destroy their reserves by 330 billion $.

I think they have better things to do with their money.

 

 

lolmao500's picture

Destroy their reserves? Really? 10% stronger yen = 10% stronger buying power.

So care to share the maths about ``destroy 330 billion of their reserves``?

 

Sudden Debt's picture

does a 3 trillion dollar foreign currency reserve ring a bell?

dark pools of soros's picture

so they just need to keep converting their fiat reserves into PMs and commodities while raising their own currency

 

if they have so much god damn reserves who cares if their exports suffer??  just shift their economy - they call the shots now

hidingfromhelis's picture

All (Asian) fiat currencies look the same to them, I guess.

Attitude_Check's picture

The loss in FX reserves will be offset in increase in purchasing power of the Yuan.  I'm sure that the total amount of Yuan is WAAAAY more than $3.3T!

Head for the Hills's picture

Makes sense after the Walmart price announcement.  A company

that ships almost all of their goods from China should have a clue.

Temporalist's picture

If China did anything it wouldn't be a 10% leap it would be a slow ramp up of .25% at a time maybe .50%.  They'd want to watch the reaction first before they jump of the divingboard with no way back.  That isn't even figuring the trade reasons they wouldn't want to do it.  But I think it will happen naturally anyway as they are the bookie to the U.S.

Dangertime's picture

There are plenty of dips here buying.

Re-Discovery's picture

I've noticed some hostility between the fiats and the reals lately.  C'mon guys, we can all get along.  I mean you're up 1.5% today so good for you (not quite 2.7% in Sprott's silver, but you're doin' fine buddy.)  Lets not let this degenerate into performance envy.  You guys stay in your end of the pool and we will in ours.  We'll let you in later if the water gets too deep over there. . .I promise.

FIAT_FixItAgainTony's picture

water isn't the problem for real money advocates.  it's the fiat peeps that will need the water to put out the flaming fiat fires.

gold and silver are what they are and that is a fact that will not change.

the paper is worth less so that means it's worthless.

i suggest you make a paper fiat boat and float over to the real side before you get severely burned.

jus sayin....

Long-John-Silver's picture

Sorry your butt hurt about not getting on the free money train.

Sudden Debt's picture

To explain, we must first address mine supply. In 2010, the world mined approximately 736 million ounces of silver and 85 million ounces of gold.3 The world also produced an additional 215 million ounces of silver and 53 million ounces of gold from recycled scrap.4 Adding both together brings us 951 million ounces of silver and 139 million ounces of gold supply, for a ratio of nine ounces of silver to one ounce of gold.

Gold supply is way bigger thant silver stocks and gold still risks to be hit by the D wave by the end of july.

 

faithfulwatchman's picture

Looks like this IS the dip according to this article! Buy now, the Fiat currency is going bye-bye...so BUY, BUY!

 

JPM GO BOOM BOOM!

Re-Discovery's picture

Does a 1% up move at the opening now qualify as a dip?

In a world where I deposit money with a bank and get less back a week later, I think it might.

Cognitive Dissonance's picture

What is the 'natural' Silver to Gold ratio found in Mother Earth? I've always thought it was in the 15 to 20 range. Anyone know?

Sudden Debt's picture

Just go to you nearest graveyard with a showel and a metal detector and dig some holes.

I think you'll strike more gold than silver :)

 

 

Hook Line and Sphincter's picture

And to think that we'll actually see that day. Shovels, graveyards. Some of us will actually be the ones being dug up!

silvertrain's picture

Many experts claim from 12-16 to 1...So your right on it...

savagegoose's picture

artilce sstated 10 to 1 silver to gold  in ground

Flakmeister's picture

@CD

  16:1 is the generally accepted value, production ratio is about 9:1

JLee2027's picture

That was before modern industrial demand. The world has changed. The new ratio will be new, and not the historical one.

 

Flakmeister's picture

  The crustal ratio is not affected by industrial demand....

Stormdancer's picture

In 2010 there were 22,889.6 tonnes of silver dug up and refined.  2652 tonnes of gold.  That's running about 8.6 to one.

In 2009 it was about 9.5 to one (going from memory on that one).

 

I've often read the in ground ratio is 12 -17...but I've never seen the actual ratio mined rise that high.

 

EDIT:  I was wrong.  The mined ratio for 2009 was also 8.6.  In 2009 22,342.1 tonnes of silver were produced, compared to 2572 for gold.

Musta been 2008 that was 9.5 (don't quote me :)

cowdiddly's picture

I Think its is about 10:1 but Could be as low a nine or as high as 16. Ray Charles could see this one coming.

mick_richfield's picture

In the entire Earth, the ratio is close to parity.  But in the crust of the Earth that we can reasonably mine, it is somewhere between 12 and 15 to 1 -- very close to the recent standard.  ( "Recent" meaning "since the discovery of the New World."  ( I am older than I look. ) )

Al Gorerhythm's picture

MAthman calculates 1:100. Shit's lying everywhere.

Aengrod's picture

Silver bitchez!

mr.glitch's picture

We aren't even through the first scene of Act I yet...Good luck.

SheepDog-One's picture

Problem is, this play goes right from the first scene to the fat lady singing.

Cognitive Dissonance's picture

Better get more popcorn. I sure as hell hope there's an intermission because I gotta go......bad.

Former Sheeple's picture

CD,

I read 16:1 repeatedly, but this seems to indicate its more like 8.6 to 1

"In 2010, the world mined approximately 736 million ounces of silver and 85 million ounces of gold."

Cognitive Dissonance's picture

Someone above just stated that while the in ground ratio is around 16 to 1, in real world production it works out to be 9 to 1. That may account for the different numbers.