as we near 2013 and new record highs
The silver investment market is very small. While the dollar value of gold in the world approaches $9 trillion, the value of silver in the forms of jewelry, coins, bars and silverware is estimated at around $150 billion (5 billion ounces at $30 per ounce). This is a ratio of 60:1 in dollar terms.4
How long can investors continue to buy silver at the current ratios when the availability for investment is only 3:1? We are surprised that the price of silver has remained at such a depressed level compared to gold. Historically, the price ratio between gold and silver has been 16:1, when both were currencies. Today the ratio is 55:1, so what are the numbers telling us? We believe this is one of those times when smart investors will be well rewarded to “Follow the money.”
On behalf of all of us at Sprott, I wish you safe and happy Holidays and a prosperous New Year.
P.S. – US Mint Sold Out of Silver Eagle Bullion Coins Until January 7, 2013
The Mint recently informed authorized purchasers that all remaining inventories of 2012-dated Silver Eagle bullion coins had sold out and no additional coins would be struck. Since the 2013-dated coins will not be available to order until January 7, 2013, this leaves a three week void for the Mint’s most popular bullion offering.
SVLC Ownership Summary
Top 5 Holders
| SPROTT INC. || 9,040,600 |
| AGF INVESTMENTS INC. || 3,417,142 |
| WELLINGTON MANAGEMENT CO LLP || 3,241,000 |
| LIBRA ADVISORS LLC || 2,541,941 |
| JPMORGAN CHASE & CO || 2,057,150 |