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Gold-silver ratio to drop to 20; next silver price bull run will "shock" markets

Kitco News

(Kitco News) - The gold-silver ratio has never stayed this high for long, and it’s only a matter of time before prices normalize, this according to Jeff Clark, senior precious metals analyst of
“I believe that the gold-silver ratio is probably going to fall to 20, maybe even below that in the next bull run because there’s going to be such a shock that people are rushing into silver,” he said.

The gold and silver markets are small enough that any significant inflow of capital could push prices higher, Clark told Kitco News on the sidelines of the Vancouver Resource Investment Conference.

“The gold market is so small that Warren Buffett could take less than 5% of his cash and buy every registered ounce of gold on the COMEX,” he said.
Clark noted that investors should position themselves before money flows into the metals space.

“It doesn’t take much demand to drive the price higher. It doesn’t take much demand to crimp supply,” he said. “If you believe we’re going to have a silver and gold bull market, you want to make sure you’re buying now before any of those kinds of things happen.”

Clark added that Apple (NASDAQ: AAPL) is able to buy the entire market capitalization of all primary silver producers that are listed with only its cash.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.