Jim Letourneau's Blog

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Silver Makes New Highs

Silver just doubled. At least in Canada it has. At the Canadian Mint, where a new coin issue is being announced.

These coins are selling like hotcakes. Demand is high. As usual, the devil is in the details and in this case one of the details is that the coin weighs 7.96 grams. There are 0.0352739619 ounces in a gram so my (always dicey) math comes up with C$20 for 0.28 ounces of silver or just over $71/oz (the spot price today closed at US$30.41). 

In other words there is US$8.53 worth of silver in the coin but you can buy $20 worth of stuff with it because the mint stamped $20 on the coin. What a business!