As I mentioned the other day, Seeking Alpha has accepted my first article submission with them. It’s obviously not for everyone, but hopefully will help readers think through the issues presented.
For those who can play the ratio, it could offer some valuable insights. But even for those who can’t, the fundamentals that underlie silver still seem to represent an amazing opportunity. Time will tell.
I’m not allowed to post the entire article here since Seeking Alpha submissions must remain exclusive. So here’s an excerpt, with a link. I hope you enjoy it. And, please, pass on your thoughts on how helpful you think this is, as well as any recommendations to improve it.
Kind regards,
Another Joe
Silver And Gold: Trading The Ratio
While the ratio of silver to gold available in the earth’s crust is estimated anywhere from 25/1 to 18/1, the silver to gold production ratio is only about 8/1. This is because silver, with a few exceptions, is generally a by-product that’s refined in the pursuit of gold, copper and other metals.
Rounding overall availability of silver to 20/1 in relation to gold, for simplicity, silver’s value should have been approximately $50 when gold was $1,000 and $100 when gold reaches $2,000. According to production alone, if the market value of silver were equal to its availability in relation to gold, it would have been $100 when gold reached $800, and $200 when gold reached $1,600.