Bill’s Blog | April 17, 2025
I will keep this blog brief, but it will be imperative for those who want to add to their silver position or start building one. Why? So let me explain, at the time of my writing, it would take 102 one-ounce silver coins to purchase one ounce of gold. The 102 to 1 ratio has only happened two other times in history (this being the third time). The last time this happened I purchased more silver (as I have done again twice in the prior week). These events are extremely rare, and more than likely we will see silver return to an 80 to 1 ratio (approximately) in the coming months. In extreme bull markets, we can see silver drop below 30 to 1 Gold/Silver Ratio and I foresee this possibly happening in the coming years.
Why is silver so important as part of your overall wealth strategy? Firstly, purchasing physical silver has no counterparty risk. Second, silver has become a critical metal industrially for almost every electronic product on the planet (cell phones, computers, EVs or Hybrid Cars, Solar panels, missiles and dozens of medical applications). Third, silver is still an investment metal that holds value and increases in uncertain times as we have witnessed over the last 25 years. Fourth, silver is now in its 5th year of deficit. Meaning, the demand for silver has greatly increased, but miners cannot keep up with the demand by about 200 million ounces per year. Huge deficits will mean higher prices.
Silver and gold prices last year went up 47% in Canadian dollar terms, and we are seeing the same phenomenon worldwide as currencies continue to devalue due to massive deficits and debts. I suspect we will continue to see strong gains in price appreciation in both metals in 2025. Gold is already up 20% plus in the first four months and Little Brother silver is lagging, but I foresee a strong finish to the year with silver at or exceeding $40US per ounce.
As mentioned now is an excellent time to add to your silver position. Please ask me about my client discount. Can be purchased in cash or can be set up in an RRSP (Transfer) or TFSA. Metals can be vaulted with Brinks or shipped with insurance to your address.
All the best in 2025,
Bill Westmacott, Precious metals specialist.