Agoracom Blog

American Creek $ What Do Gretzky, Silver, and Treaty Creek Have To Do With Each Other and Why Is It Important? Doug Casey and Eric Sprott Explain $ $ $ $ $ $SA $ $ $

Posted by AGORACOM-Eric at 9:21 AM on Monday, August 31st, 2020

This week Rick Rule and Doug Casey had an excellent 2 part interview on Kitco. It was both highly informative and entertaining. I suggest that everyone watch it after you listen to Eric Sprott so I’ve included the Kitco links below for you. In the interview Doug Casey suggests that we all try to follow the advice of Wayne Gretzky which is this “On the ice skating arena, most guys skate to the puck, and that’s a problem because there’s all these big mean guys swinging sticks….skate to where you think the puck is going to be opposed to where all these big means guys swinging sticks are”.

Who can argue with Gretzky given his track record? That’s exactly what Eric Sprott is doing with his investments. He closely follows the silver / gold ratio which is 17.5:1 in the ground. As you can see on the 10 year chart below the market ratio has had dramatic increases over the last decade, and industry experts are saying it is due to silver being more manipulated than gold. In April of this year it reached a peak of 114.77 (a 94 year high) and (for various reasons) is on its way back down.

Sprott has stated that all the data “is screaming” that the market silver / gold ratio will go down to a 15:1 ratio (for many reasons but one is that the silver / gold ratio in production is only 8:1 so there just isn’t enough silver out there to account for all the silver accounts on paper and people are starting to want delivery – a very wise decision).  So like Gretzky, Sprott is looking at where the puck is going to be, or in this case where silver is going to be, and evaluating companies based on where they would be if a 15:1 ratio were to take place.
I thought he would start talking about the many high-grade projects out there but instead the very first example he had was Treaty Creek where the silver is just an afterthought!  The first 12 minutes is spent discussing arguments for silver and then Eric explains why Treaty is the first one he mentions would benefit from a dropping silver / gold ratio (11:40 – 13:19).  

As promised, here is the two part interview with Rick Rule and Doug Casey.  I highly suggest you watch it to the end!

SOURCE: American Creek Resources

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