(Kitco News) – The gold-silver ratio has by no means stayed this excessive for lengthy, and it’s solely a matter of time earlier than costs normalize, this based on Jeff Clark, senior valuable metals analyst of GoldSilver.com.
“I consider that the gold-silver ratio might be going to fall to 20, possibly even beneath that within the subsequent bull run as a result of there’s going to be such a shock that persons are dashing into silver,” he stated.
The gold and silver markets are sufficiently small that any vital influx of capital may push costs larger, Clark advised Kitco Information on the sidelines of the Vancouver Useful resource Funding Convention.
“The gold market is so small that Warren Buffett may take lower than 5% of his money and purchase each registered ounce of gold on the COMEX,” he stated.
Clark famous that buyers ought to place themselves earlier than cash flows into the metals area.
“It doesn’t take a lot demand to drive the worth larger. It doesn’t take a lot demand to crimp provide,” he stated. “For those who consider we’re going to have a silver and gold bull market, you wish to be sure to’re shopping for now earlier than any of these sorts of issues occur.”
Clark added that Apple (NASDAQ: AAPL) is ready to purchase the complete market capitalization of all main silver producers which are listed with solely its money.
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