Silver is giving every impression of going ballistic and moving towards its more traditional 15 to 1 ratio with gold - that would mean a silver price of over US$90 dollars an ounce with US$1390 gold.
If I am right that silver is going to rise far, far quicker than gold, then the few ASX listed silver stocks will explode upwards due to demand chasing such a limited supply.
AYN's last resource upgrade was on the 29th. March last year - over 15 million ounces at 79 g/t silver using a 40 g/t cut off. Another resource upgrade is expected soon. I expect a significant increase.
The higher silver price alone will increase these resources. But AYN has also done plenty of drilling since then and returned some sensational results in the hundreds of g/t.
Funding is in place. There is no debt and no hedging limiting price upside. But as further protection AYN has purchased puts over 770,000 ounces at $A27.00 and ounce, guaranteeing that minimum price with full 100% upside to price rises.
AYN Price at posting:
3.3¢ Sentiment: Hold Disclosure: Held
