RE: SIlver to gold ratio is out of whack Sandstorm is an easy buy. SIlverwheaton is alot riskier at this point. I forgot to mention this. Its at 23$/share because of the disaster that Pascua Lama the Barrick gold mine that has been shut down by the Chilean government. High risk here. High reward. Barrick gold may go bankrupt over this mess. They have already spent 8 billion dollars on this project.
So with SilverWheaton you get a bigger company. More streams; alot of them with 30 year mine lifes. SilverWheaton is 85%silver 15% gold. Roughly. And silver is in the dumps right now. So if you like buying low... well this is it. With Pascua Lama having been priced in. ( the potential bankruptcy of Barrick not yet priced in though) And a dividend of about 2%/year.
But as a wise man (James Turk) once said about the precious metals ride; Gold is like riding in a Boeing 787. Nice smooth ride. Lows are manageable, highs are not insanely severe.
Silver on the other hand is a much smaller market so it's like riding an F-35. Crazy highs and awful lows. But potential for a more rewarding experience if your stomach can take it. And if your timing is right. (buy low)
I would say these are both awesome streamers. I am buying both for one more year. If these are the lows so be it. If they arent I will average in. The biggest risk in my mind are the miners avg cost per ounce now apparently between 700-2300$ ... !!! Avg being about 1300$/ounce. So if the price doesn't rise what will happen to the marginal mining companies.Or even the established ones? The gold and silver mining sector is in trouble with these ridiculously low prices. The streamers are in the best shape. Which is why I am buying them, But I do see a rough few months ahead. The fed and world governments need to be careful not to collapse mines. The supply would dry up when everyone is buying. This is my biggest fear. Gold needs to be at a minimum of 1800$/ounce IMO. For mining companies to be safe and solid.
This is why I hedge my positions with physical silver and gold. Has there been a time when gold and silver physical ownership has been more necessary???? I don't think so. I hate the fact that the COMEX sets the price and that bullion sales have almost no affect on the gold and silver price. The more I think I know the more questions I have about this market. GLTA.