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To our Shareholders and Investors
During this first week in May, we announced the appointment of a new director, James Walker, who is not only a mining engineer, but a mechanical engineer and nuclear physicist, who managed projects for Rolls Royce PLC, one of Britain's premier companies. We welcome James to our Board of Directors.
We also announced the retirement of our good friend, director, and QP, Dr Clay Conway, who has been instrumental in giving us sound geological advice on our projects for over ten years. We wish him a happy retirement so he can tend to both his garden, and grandchildren. See our news release BHS2019-13
This past week Bayhorse CEO Graeme O'Neill was interviewed by the Independent Speculator's Louis James, a well respected analyst who writes under the name Lobo Tiggre . The interview can be on the Independent Speculator website.
This past week we saw something that has not happened in over 25 years. The ratio between silver and gold widened to over 87 to 1, or it took 87 ounces of silver to buy one ounce of gold.
This event is not only unprecedented, but jaw dropping as to the time the ratio has been over 80:1. Looking at the 20 year chart below, we can see it has steadily marched from the 2011 low to the current 87:1.
Past incursions into this stratospheric realm have rarely ever lasted more than a month. This one has been in the stratosphere for well over a year, that indicates a correction back to the mean will do an overshoot, just like happened in 2009 to 2011, or a swing from 87:1 down to 34:1. That would indicate a spot silver price of well over $30, or double the close Friday.
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For the third time in the past 12 months, spot silver has dropped precipitously, further weakening confidence in the value of holding silver, or silver stocks, in investment portfolios. Sprott, however, calls it the Silver Lining.
Whenever something is seriously out of whack to the norm, this is the time to grit one's teeth and back up the truck, in the case of silver and gold, or in the case of the senior markets, start off loading and take profits.
In the case of Bayhorse, we have survived the past three terrible years in the precious metals market. We have continued to advance our Bayhorse Silver Mine to production, despite the over 65% share price drop from 2016, and are poised to take advantage of increasing silver prices. And with Brandywine, we have added another, easily accessible past producing silver and gold property at bargain basement prices, to give us blue sky.
We thanks our shareholders for their patience during these trying times, and here's to successful investing and capital gains in 2019
The Bayhorse Silver Team
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