Hello,
So, the case remains unchanged; buy silver when the gold to silver ratio is above 80:1. But, now silver is out-performing gold significantly and the ratio is strongly trending towards a lower gold to silver ratio.
If the previous steep drop is extended from the recent high, then it could imply a G:S ratio of around 45:1, which is;
- right in my buy-zone (that would be a dream come true),
- looking more and more likely.
Luckily, I made a significant silver purchase in late May. I was going to buy gold, but with a gold to silver ratio at around 102:1 then, I just couldn't do it. I had to buy silver instead. I have physical silver ETFs and silver miners.
Actually, HYMC Hycroft Gold also did really well last night +14% (I was watching it spike up at market open). I have a position in HYMC. Because;
- It has almost 20Moz in gold equivalent ounces,
- Seems likely to start mining shortly (6 months or a year maybe commencing heap-leach operations while they seek finance for a processing plant),
- They are extremely under-valued. When I bought in I was only paying $4.40 per gold equivalent ounce,
- They have debt issued, but the bulk falls due 1st Dec 2027 - so there is a bit of time to seek additional funding or re-financing,
- It is in a reliable mining-friendly jurisdiction - Nevada,
- They had some ridiculous drill results recently... over 80,000g/ton Ag (yes only 0.2m of that but still) plus other strikes at 20,000, 15,000, and 10,000g/t Ag.
- The large component of silver was a positive for me, because silver is leverage on gold. I want more silver so I can buy more gold in the future.
For me HYMC was a clear "buy" despite discussing it with someone at Sprott, and they weren't positive about it. I hope it doesn't go up too much, because I see HYMC in the tens of dollars in a couple of years time, not in the single digits.
So, the case remains unchanged; buy silver when the gold to silver ratio is above 80:1. But, now silver is out-performing gold significantly and the ratio is strongly trending towards a lower gold to silver ratio.
If the previous steep drop is extended from the recent high, then it could imply a G:S ratio of around 45:1, which is;
- right in my buy-zone (that would be a dream come true),
- looking more and more likely.
Luckily, I made a significant silver purchase in late May. I was going to buy gold, but with a gold to silver ratio at around 102:1 then, I just couldn't do it. I had to buy silver instead. I have physical silver ETFs and silver miners.
Actually, HYMC Hycroft Gold also did really well last night +14% (I was watching it spike up at market open). I have a position in HYMC. Because;
- It has almost 20Moz in gold equivalent ounces,
- Seems likely to start mining shortly (6 months or a year maybe commencing heap-leach operations while they seek finance for a processing plant),
- They are extremely under-valued. When I bought in I was only paying $4.40 per gold equivalent ounce,
- They have debt issued, but the bulk falls due 1st Dec 2027 - so there is a bit of time to seek additional funding or re-financing,
- It is in a reliable mining-friendly jurisdiction - Nevada,
- They had some ridiculous drill results recently... over 80,000g/ton Ag (yes only 0.2m of that but still) plus other strikes at 20,000, 15,000, and 10,000g/t Ag.
- The large component of silver was a positive for me, because silver is leverage on gold. I want more silver so I can buy more gold in the future.
For me HYMC was a clear "buy" despite discussing it with someone at Sprott, and they weren't positive about it. I hope it doesn't go up too much, because I see HYMC in the tens of dollars in a couple of years time, not in the single digits.
Trade active
Bought silver to trade for gold at a lower G:S ratio.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.