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Silver Cheapest to Gold in 7 Years – ETFHoldings Surge

Silver undervalued
Back in 2011 , the last time we had a major move in gold and silver, the silver to gold ratio dropped to 30 to 1!
Today the ratio is 82 to 1, and silver is extremely under valued as it was back then. 
If gold climbs back to $1,500 dollars and the silver to gold ratio drops to 40 to 1, that would put silver in the $37.50 neighborhood!
Don’t wait to buy silver, buy silver and wait!

Mary O’Byrne
March 10, 2016

Silver hasn’t been so cheap relative to gold for more than seven years and with silver ETF holdings having surged in recent days, silver coin and bar demand very robust and mine supplies forecast to contract this year, there are signs that silver is set to resume its bull market and outperform gold once again.


Eddie Van Der Walt and Ranjeetha Pakiam write in Bloomberg today:

Mine production of silver will probably drop in 2016 for the first time in over a decade and demand is set to outstrip supply for a fourth straight year, says Standard Chartered Plc. Much of the world’s silver is extracted from the ground with other minerals, and output cuts announced by the biggest miners will hurt supplies of the metal as well as others such as copper and zinc.

Silver’s 10 percent advance this year has trailed gold’s 18 percent surge as financial turmoil and worries about a global slowdown sent investors flocking to the yellow metal as a haven. An ounce of gold bought about 83 ounces of silver last month, more than any time since the financial crisis of 2008. That’s a signal to some that it’s relatively undervalued and will narrow the gap.

More than 50 percent of demand comes from industry, including about a quarter from electronics, and to some extent silver’s fortunes follow those of industrial raw materials such copper, zinc and lead. The London Metal Exchange index of six metals has climbed about 14 percent since slumping to the lowest level in more than six years in January.

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