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Thursday, 09/07/2017 8:59:26 AM

Thursday, September 07, 2017 8:59:26 AM

Post# of 389
Gold to Silver Ratio Will Tighten
Good Afternoon,

For those of us bullish on gold we are even more so on silver. The current gold to silver ratio at 75 to 1 (it takes 75 ounces of silver to buy one ounce of gold) is historically quite high. At the tops in gold/silver prices in 2011 the ratio dropped to 30 to 1 which means if it does that again silver will gain more than double what gold does. I think the mid 30's will happen again and many believe it could go back to 16 to 1. It could, but we don't need to see that ratio to make boat loads of cash in the junior silver miners.


I believe that we are on the cusp of a very strong sustained move higher in precious metals. There is a big part of me that believes it will be a shocking ascent going through 2018, blasting through nearly everyone's expectations. I do believe after being blasted for 5 years in mining shares, enduring a 4 year correction in gold/silver, and then a 50% dive since last July in miners, people are prone to be too conservative. By the time everyone "feels good" about gold again the price will be much higher. I feel good about it now and am recommending several undiscovered silver juniors in our premium service.


One silver junior that we cover here in the free newsletter had more very bullish news out today. Southern Silver (SSV/SSVFF) grew the high grade extension at Cerro Las Minitas with assays up to 6.8 meters and 480 g/t silver equivalent. I believe SSV will trade north of $1 by the end of the first half of 2018 which is more than a double from current prices. The CLM property in Mexico is turning into a dynamo with serious silver/zinc resources already proven but still growing aggressively as we can see. In addition, a resource update is due later this month which will boost the asset value quite a bit in my opinion. Here is the last report I put out on SSV after visiting the site earlier this year:


http://www.goldinvestmentletter.com/southern-silver-site-visit-and-valuation-update/


GIL readers should be all over this stock around 40 cents on SSV. I am actually shocked that so many people are sleeping on this thing! Virtually no volume on this bullish news today tells me that the environment is still filled with complacency and/or concern versus real enthusiasm. There are pockets of excitement in Scandinavia and the Golden Triangle in Canada but sooner or later all of these juniors will start to fly. Zinc prices keep hitting new decade highs and SSV has more zinc than silver in Mexico! I view this as a silver stock but the base metals they have as well are very valuable now that iron, lead, zinc, etc are all busting out.


Mining entrepreneur billionaire Tom Kaplan's Electrum Group owns about 40% of Southern Silver shares and 60% of Cerro Las Minitas itself. I expect a very aggressive new drill program to be outlined for this fall/winter and 2018 we could see a buyout of Southern Silver. It would not surprise me at all at this stage! I suggest investors keep your eye on the ball and be well positioned in SSV/SSVFF before they announce their resource update in the next few weeks. The share price is cheap here at 40 cents....very cheap! Here's the news link from today:


https://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aSSV-2503163&symbol=SSV®ion=C


I'm long SSV


???????


Gold Investment Letter

Sincerely,
Eric Muschinski
Gold Investment Letter
eric@phenom.ventures


It is easy to figure out what you believe. The difficulty lies in determining - is what you believe the truth.