The market is always rightExcept when it is not of course.
As of today the ration of silver to gold is 69:1 If you have 69 ounces of gold it has the same value as one ounce of gold. Over a century the ratio has been between 10:1 and 100:1 but is recent decades the ratio has hovered around 60:1 for much of the time.
Silver production is now declining and is likely to continue to decline for at least 4 or 5 years.
My own expectation is that the ratio will meander between 50"1 and 60:1 as we go towards 2025.
If this happens it would mean that silver would gain on gold
Key 2016 metrics
SLW revenue may surpass $1b for the first time ever (current gold and silver prices)
40% gold
60% silver roughly
2016 attributable production (streaming)
265,000 gold
478,000 gold equivalent from 33 million ounces of silver
750,000 gold equivalent roughly in 2016
FNV may have revenue of about $600m (60% of SLW)
69% gold
20% silver
6% PGM
5% oil gas and misc
~ 450,000 of gold equivalent (incl oil and misc) Includes streams and traditional royalties
SLW is about 65% to 70% bigger AND SLW only has streaming royalties
The market cap of SLW (on the surface) should be 70% bigger but should be even more so as FNV has a lot of plain old royalties (2% NSR etc)
But ... FNV has a bigger market cap than SLW. Go figure.
This is so out of whack with reality. It will self correct over time and I sense that that timeline may be closer than most people think
mat