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

Tyler Durden's picture

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 04/20/2011 - 10:39 | 1187995 Josh Randall
Josh Randall's picture

Lookin' for another dip to buy

Wed, 04/20/2011 - 10:50 | 1188043 Turd Ferguson
Turd Ferguson's picture

Give it a few more hours and then wait for Tuesday. Please read:

Wed, 04/20/2011 - 10:56 | 1188073 Cash_is_Trash
Cash_is_Trash's picture

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

Sound money, bitchezzz

Wed, 04/20/2011 - 11:54 | 1188442 centerline
centerline's picture

Great site Turd.  I stop by daily.

Wed, 04/20/2011 - 23:35 | 1191142 TheGoodDoctor
TheGoodDoctor's picture

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

Wed, 04/20/2011 - 12:10 | 1188496 Josh Randall
Josh Randall's picture

Roger - good insight as always Turd

Wed, 04/20/2011 - 11:13 | 1188178 Long-John-Silver
Long-John-Silver's picture

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

Wed, 04/20/2011 - 14:18 | 1189154 smlbizman
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.... 

Wed, 04/20/2011 - 10:42 | 1187997 lolmao500
lolmao500's picture

Gold will crash then? - Geithner

Wed, 04/20/2011 - 11:42 | 1188391 Problem Is
Problem Is's picture

"Gold WILL crash." Timmay Jeethner

Wed, 04/20/2011 - 10:44 | 1188006 lolmao500
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.

Wed, 04/20/2011 - 10:45 | 1188009 Tyler Durden
Tyler Durden's picture

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

Wed, 04/20/2011 - 10:47 | 1188020 Sudden Debt
Sudden Debt's picture

that would destroy their reserves by 330 billion $.

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



Wed, 04/20/2011 - 10:50 | 1188040 lolmao500
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``?


Wed, 04/20/2011 - 10:58 | 1188052 Sudden Debt
Sudden Debt's picture

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

Wed, 04/20/2011 - 14:47 | 1189320 dark pools of soros
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

Wed, 04/20/2011 - 11:21 | 1188225 dogbreath
dogbreath's picture


Wed, 04/20/2011 - 18:49 | 1190329 hidingfromhelis
hidingfromhelis's picture

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

Wed, 04/20/2011 - 11:45 | 1188404 Attitude_Check
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!

Wed, 04/20/2011 - 10:48 | 1188031 SheepDog-One
SheepDog-One's picture

Simply not gonna happen.

Wed, 04/20/2011 - 11:07 | 1188144 Head for the Hills
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.

Wed, 04/20/2011 - 13:46 | 1189005 Temporalist
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.

Wed, 04/20/2011 - 10:45 | 1188010 Dangertime
Dangertime's picture

There are plenty of dips here buying.

Wed, 04/20/2011 - 10:59 | 1188103 Re-Discovery
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.

Wed, 04/20/2011 - 16:13 | 1189757 FIAT_FixItAgainTony
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....

Wed, 04/20/2011 - 10:59 | 1188106 Long-John-Silver
Long-John-Silver's picture

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

Wed, 04/20/2011 - 11:14 | 1188189 Long-John-Silver
Long-John-Silver's picture

$45.04 Silver Bitch

Wed, 04/20/2011 - 10:43 | 1188011 Sudden Debt
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.


Wed, 04/20/2011 - 10:44 | 1188015 faithfulwatchman
faithfulwatchman's picture

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



Wed, 04/20/2011 - 10:53 | 1188066 Re-Discovery
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.

Wed, 04/20/2011 - 12:28 | 1188575 mick_richfield
mick_richfield's picture

Well ... fluctuations.



Wed, 04/20/2011 - 10:46 | 1188017 Cognitive Dissonance
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?

Wed, 04/20/2011 - 10:49 | 1188027 Sudden Debt
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 :)



Wed, 04/20/2011 - 12:15 | 1188524 Hook Line and S...
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!

Wed, 04/20/2011 - 10:51 | 1188033 Snidley Whipsnae
Snidley Whipsnae's picture

In 1792 the US set the ratio at 15:1 according to this Wiki link.

Wed, 04/20/2011 - 10:52 | 1188035 silvertrain
silvertrain's picture

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

Wed, 04/20/2011 - 10:55 | 1188062 savagegoose
savagegoose's picture

artilce sstated 10 to 1 silver to gold  in ground

Wed, 04/20/2011 - 11:02 | 1188111 Flakmeister
Flakmeister's picture


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

Wed, 04/20/2011 - 12:57 | 1188755 JLee2027
JLee2027's picture

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


Wed, 04/20/2011 - 17:22 | 1190028 Flakmeister
Flakmeister's picture

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

Wed, 04/20/2011 - 11:32 | 1188233 Stormdancer
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 :)

Wed, 04/20/2011 - 11:20 | 1188239 cowdiddly
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.

Wed, 04/20/2011 - 12:29 | 1188588 mick_richfield
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. ) )

Wed, 04/20/2011 - 15:15 | 1189443 Al Gorerhythm
Al Gorerhythm's picture

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

Wed, 04/20/2011 - 10:46 | 1188023 Aengrod
Aengrod's picture

Silver bitchez!

Wed, 04/20/2011 - 10:51 | 1188034 mr.glitch
mr.glitch's picture

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

Wed, 04/20/2011 - 10:51 | 1188049 SheepDog-One
SheepDog-One's picture

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

Wed, 04/20/2011 - 10:54 | 1188061 Cognitive Dissonance
Cognitive Dissonance's picture

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

Wed, 04/20/2011 - 11:10 | 1188172 Former Sheeple
Former Sheeple's picture


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."

Wed, 04/20/2011 - 11:29 | 1188282 Cognitive Dissonance
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.

Do NOT follow this link or you will be banned from the site!