Precious metals investors, history buffs, scientists and even mainstream America have been captivated this week by the age-old lure of sunken treasure:
Forty-eight tons of silver has been discovered three miles beneath the surface of the North Atlantic, deep in the belly of the S.S. Gairsoppa.
Recovered was an estimated $38 million in silver–only 20 percent of the total silver believed to be aboard the sunken ship–and the company responsible, Odyssey Marine Exploration, hails it the most enormous precious metals recovery in history.
The 412-foot, steel-hulled steamship was located about 300 miles off the coast of Ireland. At the time of its sinking, the S.S. Gairsoppa was enlisted to serve the United Kingdom Ministry of War Transport, hauling essential war supplies across the globe.
The ship made its tragic journey to the bottom of the sea in 1941, after being torpedoed by a roving Nazi U-Boat. The ship was jam packed with nearly 7,000 tons of cargo, including tea, pig iron, items listed as “general cargo” and of course, massive quantities of silver.
So far, the Odyssey expedition–contracted by the UK Department of Transport–has recovered about 43 percent of the insured silver, hoping to recover the rest within 90 days. As part of the contract, Odyssey gets to keep 80 percent of the loot.
Greg Stemm, Odyssey Chief Executive Officer said in a press release this week, “With the shipwreck lying approximately three miles below the surface of the North Atlantic, this was a complex operation.”
Complex? Yes. Advantageous? Of course yes.
The 48 tons of silver recovered (1,203 bars totaling 1.4 million troy ounces) could be worth as much as $38 million. And if the ship’s entire stash of 240 tons of silver is retrieved? That could fetch a staggering $190 million. The silver mother-load indeed.
Yet the massive treasure hunt doesn’t end there. Odyssey has undertaken the exploration of another sunken ship, the S.S. Mantola. If found, the British ship is believed to be hiding another 600,000 ounces of UK-insured silver.
So Provident Metals wants to know what you think:
Considering silver’s intrinsic value, its advantage as a hedge against inflation and a stellar diversification strategy (and veritable insurance policy at that), what does this historical influx of silver mean for the precious metals market?
