As I write the ratio of silver to gold is about 96-1. It takes 96 ounces of silver to buy one ounce of gold. As the magnificent Steve Saville has just pointed out the ratio is within five percent of the highest it has ever been in history. Once in 1942 and again in 1993 when the ratio touched just over 100-1. I believe it will again.
For those who have read my books, I advocate using the silver/gold ratio to make a relatively safe but highly predictable return. Buy what is cheap (silver) and sell what is dear (gold). The DSI on gold hit 96 about ten days ago on the 21st of February. Like palladium and rhodium gold got frothy. Palladium and rhodium got super frothy with palladium almost touching $2800 an ounce and rhodium going to $12,000 an ounce on the ask. A correction is necessary for a healthy market no matter what the conspiracy people tell you.
Dolly Varden Silver Corp. (DV:TSX.V; DOLLF:OTCBB) is probably the most famous name in silver in Canada. Under the British Empire, the Dolly Varden mine in the world renowned Golden Triangle was the richest mine producing direct shipping ore in excess of 1,100 g/t Ag. The Dolly Varden Silver Corp (DV-V) wants to regain that title under new aggressive management. I don't fault their timing at all. We are in a market crash dead cat bounce not withstanding. At the end of the day and the Everything Bubble we will have both a debt jubilee and a return to a precious metals financial system. Silver will be far more valuable relative to gold than today. Buy any silver company you can, they are all cheap.
With $4 million in the bank, Dolly Varden is well financed to make it through the storms ahead. The company reports a 44 million ounce 43-101 resource. At lower silver prices back just after the turn of the century silver in the ground was being valued up to $3 an ounce. It will happen again.
The company has just announced a management shift and a new CEO named Shawn Khunkhun and appointed Rob McLeod as a director. I am a giant fan of Rob McLeod. He literally was born with a rock pick in his hands and is a third generation Canadian miner.
Dolly Varden has 100% ownership of the 8,800 square Ha property with four past producing mines and four new exploration targets. The company estimates that only three percent of the project has been explored.
In 1919-1921 Dolly Varden produced 1.3 million ounces of silver at an average grade of 1,103 g/t. Between 1949 and 1959 their Torbrit Mine delivered 18 million ounces of silver at 466.3 g/t and had base metal credits. In the 1960s due to the low price of silver the mine went out of production.
In the past three years Dolly Varden drilled over 55,000 meters in 174 holes. Met testing shows silver recovery of about 86-87% using flotation and cyanide recovery on the tails.
Dolly Varden is an institutional favorite with institutions holding about 60% of the shares, Hecla Canada owns another 11% with Eric Sprott taking down another 13%. Only about 16% of the float is in the hands of individual investors leaving a great potential for the stock price to just take off.
I like the story enough to go out in the open market and buy shares. Dolly Varden has just become a sponsor so I have to be biased. If you like silver, please review their company presentation, it's very good and comprehensive.
Dolly Varden Silver
DV-V $0.295 (Mar 02, 2020)
DOLLF-OTCBB 83.5 million shares
Dolly Varden website.
Bob Moriarty founded 321gold.com, with his late wife, Barbara Moriarty, more than 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.
[NLINSERT]Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Dolly Varden Silver. My company has a financial relationship with the following companies mentioned in this article: Dolly Varden Silver is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
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