The historical ratio is 15 to 1 not 56 to 1 and I believe 15/1 is the quantity it is pulled from the ground.
Above ground reserves of gold by ounces far out weigh silver reserves as gold is hoarded and not consumed.
Applications for silver have greatly increased with medicine... but most importantly solar power with China and Japan investing heavily.
Apparently the supply side and stock piles are tight.
As an investment metal Gold is considered the metal of Kings and silver the metal of the common man. If there is an increase of money moving into PM by Joe public (afraid of their bank accounts being stolen) Silver will see higher demand especially at the current unrealistic ratio.
The Potential upside for IVR, mind boggling. If say over the next couple of years IVR proved up 200m oz and the gold ratio halved to 25/1. This would be equivalent to an 8m oz high grade open pit mine.
Fancifully stuff? Maybe?
IVR Price at posting:
12.3¢ Sentiment: LT Buy Disclosure: Held
