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Message: Carpe

Monday, September 10, 2012

$SFMI - For every cloud is a Silver lining

While Silver Falcon Mining's ($SFMI, OTCBB:SFMI) main goal is to extract gold from their tailings and mines, the silver cloud in all of this activity is that the secondary product is silver. Right now, the historical ratio between gold and silver has never been higher. Back when the US backed its paper money with these precious metals, you could exchange bills for equivalent amounts of gold and silver. The Treasury had determined that the proper ratio in price between gold and silver was about 1:15. I have no reasonable explanation for how this ratio was determined other than based solely on an estimated of mined amounts that were coming out of the ground. If you take a look at today's prices of gold and silver, you can see that the gap between the two precious metals has widened significantly past that initial 15 to 1 ratio. The current ratio with gold standing at $1700 is now almost 51 to 1. That's 3 plus times the amount originally set by the treasury and it indicates that the value of silver may eventually rise significantly over time. This potential has Silver Falcon sitting on another potential gold mine, and that is its silver stores that are also locked in the mines and tailings. For up to date info check out this facebook page http://www.facebook.com/pages/Sfmi/195487607206096
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