This Silver Stock Is Like No Other

Dear Reader, 

Last week I told you it might happen, and guess what… Gold is trading down $100 from all-time (not inflation adjusted) highs. 

Now, let’s get real here. This is only a 3% dip so this is hardly a moment to start saying ‘I told you so’. But the realities of the current precious metals markets need to be faced head on. 

Gold is just shy of $3000 — a milestone never before achieved, unless you count the early 80s spike which propelled it to an inflation adjusted $3450/ounce. 

Yet despite these historic prices, the gold bugs are all yelling ‘buy buy buy!’

It happens every time, and every time, it doesn’t fail to baffle me. Why does this continue to happen?

The answer is simple.

FOMO: Fear of missing out: the driving force behind every bubble there's ever been.

It's everywhere, and yet, it runs counter to the most basic rule of investing there is: buy low sell high.

So what exactly are you accomplishing buying just a tick shy of $3000?

Take away all the hype and hysteria and all it seems to me that you’re doing is failing in the first step of a two-step process. 

The New Investment Fad: Buy High, Sell When You Need Cash

Now, does this mean I don’t think gold will go higher? No. It doesn’t. it very well might well go higher. What it means is that your odds of achieving your invesment goals decrease the higher you buy. There's no getting around it.

If your goal is to hedge, which is the reason most people buy gold, then buying it at an unprecedented price defeats that purpose as it adds risk instead of mitigating it. 

Gold investors in today's market aren't hedging or derisking… They're speculating that prices will go even higher, and you can't do that and hedge at the same time.

The function of hedging must to be achieved using something drab and boring, and that can be done today by buying another precious metal — gold’s second fiddle — silver. 

Silver, like gold is also down around 3% this week, but unlike gold, it’s not bouncing off all time highs. 

Silver is trading in the low $30s at the moment. 

15 years ago, during a post recession silver rush, prices per ounce hit $40–$57/ounce in today's money.

Either Silver Is Underbought, Or Gold Is Overbought. It Can Be Both. It Can't Be Neither

And back in 1980, in the same year that gold hit all time inflation-adjusted highs, silver hit $50–$204 in today’s money. 

Which puts today's spot prices — $31.37/ounce as of Friday afternoon — a full 85% below absolute all time highs. 

Today, the gold-to-silver price ratio is around 100-to-1, also historically high, as for most of human history it's averaged between 30 and 50-to-1.

That makes silver’s current price — and I’m going to say this as gently as possible because I know that seemingly basic, timeless concepts are new and scary to a lot of people these days — relatively low.

Now, a lot of precious metals investors will never move from gold to silver for their own, bizarre, emotional reasons. 

Gold is more glamorous, it’s rarer, it’s more… yellow. Whatever the reason, that’s what they stick to, and that’s fine. 

Silver isn’t for everyone, but there is a very large, and very, very wealthy customer that buys silver by the shipload, and isn’t concerned with aesthetics: I'm talking about big tech. 

No Silver No Electronics

As an industrial metal, silver’s importance grows every year, right along with demand for consumer electronics.

It goes into most everything that runs our everyday lives: batteries, circuits, semi-conductors, etc.

Its unique physical properties make it irreplaceable and because of that, more and more of it is consumed, irretrievably, every year. 

The tech industry is already silver’s biggest buyer, edging out both jewelry, bullion and flatware combined, and that appetite will only grow. 

That makes silver not just scarce with regard to production, but also disappearing at the end-use stage as well. 

Intelligent, unemotional precious metals investors see all this, and are unafraid to replace, or at least supplement their gold holdings with silver positions as well. 

It's Not Mining. It's Silver Extraction Technology

The question remains… What’s the best way to do it?

Well, if you want exposure to silver, your options are varied. There’s physical metal. There are silver certificates. There are silver ETFs and there is an entire spectrum of silver miners. 

But there is one company that falls into its own category. 

This company doesn’t mine silver. It doesn’t explore or drill or run paydirt. What it does is extract silver from a previously untouchable source. 

Billions of dollars worth of high-quality silver are accessible, but only through a unique, nearly 100% efficient extraction process. 

That makes this a silver technology company, and I’ve never seen anything like it. 

It trades on the NYSE, but I bet you’ve never heard of it. 

Get the full story, and all the details, right here.

P.S. For savvy investors, the inflation’s second wave is a rare chance to capitalize from the chaos. Precious metals and energy sources have the power to transform inflation into massive gains — and THREE of those stocks are currently primed for explosive growth. Find out more here.