With the current gold to silver ratio at 85:1, Miles Franklin founder Andy Schectman calls the ability to swap gold for silver at today’s prices “the opportunity of a generation.”
And certainly there’s a lot to suggest that in time he will likely be proven quite correct.
Because while sentiment in the silver market may seem like it’s at an all-time low, these are the exact conditions that long-term value investors often dream of and salivate over finding.
This past weekend I attended the Silver and Gold Summit in San Francisco. And one of the themes that the guests I interviewed and spoke with like Rick Rule, Doug Casey, and David Morgan consistently echoed was how buying undervalued assets at times when the sentiment seems the lowest is how they’ve been able to make investing fortunes in their lifetimes.
And as Andy speaks to in this recent interview on his Gold to Silver Swap Program, trading gold for silver at a rate of 85:1 is a prime example of just that kind of opportunity.
Many in the investment community often reference a 15:1 gold to silver ratio. Which is the approximate rate at which the metals come out of the earth’s crust (with some of the history and basis for that 15:1 figure more fully explained here).
Yet add in that many leading experts such as Ted Butler, Keith Neumeyer, and others are in agreement that due to the consumption of so much of the silver that’s mined, that there’s actually less above ground silver than gold in existence at this point.
Which means a valid argument could be raised that based simply on supply and demand, the ratio could narrow even past 15:1.
Of course as many precious metals investors have become aware over the past decade, the way the markets theoretically ”should” be priced, and how they “are” priced are often somewhat divergent. Yet structuring trades that allow value and fundamentals to play to your advantage over time is how the world’s most successful investors come out ahead, time and time again.
Andy points out how the current gold to silver ratio of 85:1 is an outlier that we’ve only seen once in the last 50 years.
And that if you swapped gold for silver (which requires no out of pocket cash expense) and the ratio even reverted to its historical average of the past 50 years of approximately 42:1 (let alone if it reached 15:1 or lower), and then you swapped your silver back into gold, you’d end up with twice as much gold as when you started.
Especially now, with silver poised to explode (for Miles Franklin’s detailed report of why – just click here), the latest COT reports indicating that the commercial banks have pulled a Houdini and unwound their once massive short position, and more pressure than ever on the dollar system infrastructure, there’s a lot to suggest that swapping gold for silver at today’s prices could well turn out to be as incredible of a trade as Andy believes it will be.
I’ve always personally allocated my metals holdings heavily towards silver over gold. And while I expect both will do extremely well whenever Wall Street realizes that Washington is insolvent, I continue to expect silver to somewhat substantially outperform gold in the long-run.
So if you’d like to take advantage of what Andy Schectman feels (and I personally agree with) could well be the “opportunity of a generation,” call Miles Franklin at (800) 822-8080, or email me directly with any questions you might have at [email protected]
-To buy or sell gold and silver call Miles Franklin today at (1-800-822-8080).
-For Miles Franklin’s detailed report on why the price of silver is set to explode, click here now.