Silver obviously is a precious metal which has a history as a precious metal as long or even longer than gold. Its ratio to gold right now is about forty to one, which is extraordinarily cheap, but what needs to be realized about silver is it a precious metal and it’s a critical industrial metal.The majority of solar panels require silver and theres not enough of it if we really start large scale solar panel production. The Chinese realize this and are already accumulating silver and will continue to accelerate those efforts.
The Chairman of Goldcorp said he expected Chinese purchases of gold to exceed those of India this year, which is just extraordinary.
I would expect their purchases of silver will commensurately be even larger because they need it. They are not just buying silver because they want an alternative to the dollar, they are buying silver because they know they are going to need it desperately to build out solar energy.
So silver, is a three digit commodity there’s no doubt about that.
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