The Gold-Silver Price Ratio is Starting to Drop and Investors are Turning Towards Precious Metal Stocks - Seite 3

Silver producer First Majestic Silver Corp. (NYSE: AG) (TSX: FR) also plans to sell off some of its assets and has inked a deal with Apollo Gold for the sale of its Jalisco properties in Mexico. Upon closing the agreement, Apollo Gold will pay First Majestic Silver Corp. $250,000 and issue 4.289 million shares in Apollo Gold (equivalent to 9.9% of Apollo's issued and outstanding share capital as at the date of execution of the LOI). Apollo Gold will also issue 1.5 million share purchase warrants, each warrant entitles First Majestic to acquire one share of Apollo Gold at $0.50 a share for a period of two years.

The six Jalisco properties, which total 52.4 square kilometers, include 15 highly prospective claims. First Majestic has a 100% ownership in 13 and holds a 45% stake in two of them.

Gold Investments Likely to Continue Growing

With monetary stimulus expected to continue and a global recession looming, both gold and silver continue to be seen as investment hedges. Although gold prices continue to face volatility, the long-term forecast for gold remains bullish.

Investors will likely continue to put cash into gold ETFs, with the 2020 inflows already exceeding any full year on record, and buy up gold stocks to protect their portfolio amid low interest rates,US-China tension, and a weakening US dollar.

Although it remains to be seen whether the gold-silver price ratio will drop further it does seem like investors are beginning to show increased interest in companies like Barrick Gold Coeur Mining, Inc., Wheaton Precious Metals, First Majestic Silver Corp and Genesis Metals Corp. (GIS.V) (GGISF.QB)

For more information about Genesis Metals Corp. (TSXV: GIS) (OTCQB: GGISF), click here.

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