“Our long expressed view is that the GSR [gold-silver ratio) will revert back to the 65 level or below – how soon this will happen we are not sure. However at $1,400 gold, which we see as a possibility even this year, a GSR of 65 would mean a silver price of around $21.50 – a rise of over 20% from where it is now. That doesn’t look to be an unreasonable target, although it may take longer than four months to get there.”
USAGOLD note: We note an interesting phenomena of late. The old guard is back in the market at these prices and one of their interests is to balance their gold holdings with silver. In the past most of these investors were purely gold buyers and had never owned silver before. Now, they want to own silver for the upside potential, but they also see it as a safe-haven. This group tends to stick with the American Eagle one-once silver bullion coin pictured above.