Eric Sprott says silver will be the investment of this decade
He has to be the smartest money person in the world. He called gold as the smartest idea of the last decade, and the last three years has positioned his money now into silver. He is the smartest guy I have ever listened to in my life on money. He says gold to 5000 will happen sooner than we all think, and that silver will go back to its historic ratio of 16 to 1 re gold. This equates to a 3 fold increase in the POG, and, because Silver will be not only the metal of choice, but return to its historic relationship to gold, which amounts to a tripling itself on a constant basis.
Do the math: This is a nine fold increase in the price of silver in the near term, i.e. well before the end of this decade. Sprott is not talking like 8 years from now, sooner.
Now, if silver goes up 9 fold in price over the next 5 to 8 years, what can we expect from silver equities? Well, their historic ratio is a 3X leverage to the metal, on the upside and the downside. This is for a good PM equity. Where does that leave us with Aurcana, what should its metal to equity ratio be? I would think double the historic mean, but this is just a pure guess. It might well be much much higher, but let us keep it at double the leverage of a solid silver stock. That is 6X for Aurcana. 6 times the move in the metal, which I just ballparked at 9X appreciation before the decade ends...............Aurcana: price - 73 bucks per share, in five to eight years. Wow. sit tight, be right. btw, I would strongly urge anybody who invests in this sector to go to his company website, and listen to his last 3 talks, which are listed under his name on the first page of the site. sprott dotcom. Eric is simply the best money guy I have ever heard, brilliant is an understatement, and he says silver is the investment choice of this decade, gold the last decade, silver this one.
One more thing, he has the numbers on the gold and silver markets, and the specific reasons, but after a while, I just say, hey, if he says it, it will turn out to be so. Sort of like putting your money with Buffett back in thirty five years ago, before he became the old man of the establishment.
my calcualation puts the price of silver at perhaps 300, and this stock at 73 bucks per share. One thing about silver, if you follow the prior two PM bull markets, in the 30s and late 70s, there were many stocks that went crazy...............like from a buck to 300 in price............hard to believe but some went much higher..........this is what a stock mania is and it will definitely come to the silver stocks. I was there in the internet craze in the late nineties, and some of my internet and B2B internet stocks would go up 20 or 30 bucks per week, or more......There were several stocks that went up about 75 bucks in a single day, at the very end, during the craze...............under the mania theory, aurcana at some point will exceed a hundred bucks a share......