Please see our latest news release BHS2020-02 where we report on the gold content of the Bayhorse Silver Mine, the excellent reject grades from our Ore-Sorter , and of course our exposure to gold at our Brandywine gold project.

 

This past week, just after we announced our concentrate assays in our news release BHS2020-01, on material that has been submitted to smelters for off-take assessment and pricing, many investors optimism was replaced with dashed hopes, as the precious metals stunningly reversed.

 

Silver dropped approximately $2.40, for a three day swing from a high of $18.85 to a low of $16.45, for almost 14.5% drop, while gold came down a mere 4% or so, while the silver/gold ratio made a not insignificant move to close higher at a place only seen historically three times before.

 

Nevertheless, such dramatic swings caused all kinds of mayhem. Much of it we believe was because of margin calls that had to be covered ,and that made things worse. as it stoked fear of a greater collapse

 

A look at the most recent silver/gold ratio chart brings a little light to bear on what we may see going forward.

 

The really long candlesticks (arrows) show significant GSR ratio moves, and the small candlestick at the top of both moves indicate a reversal is probable, so this coming week or next week, we see a high probability of a reversal of the most recent GSR high of over 95:1. Is it guaranteed? No, it may go sideways for a bit, but rapid rises such as we see below, generally morph into a reversal. So either gold goes lower, or silver goes higher. On the other hand, there is always a scenario where gold goes much higher, and faster, than silver, whereby the ratio could hit 100:1, but it should, theoretically collapse quicker and silver will be in for a wild ride.