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A Silver Target and The Precious Metals Over Summer

Cory
May 1, 2017

Doc is with us today to update his lower silver targets and a look at the gold charts. There are some moving averages that have turned against the metals and will take time to recover. Summer is typically a rough time for the metals but we could see a the turn by the end of the year.

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Discussion
29 Comments
    May 01, 2017 01:31 AM

    ……sell in May and go away…….or just go away

    May 01, 2017 01:33 AM

    Doc, any more feelings about the direction potential of the VIX?

      May 01, 2017 01:01 PM

      Pardu, I believe the VIX is pretty much at a bottom—I think we could “muddle” around here for a couple more days and then I wouldn’t be surprised if we attempt a move higher.

        May 02, 2017 02:13 AM

        Doc – were you microwaving food during your interview? 🙂

          May 02, 2017 02:23 AM

          BTW – We’re in agreement that it is nice building one’s own portfolio of Smaller Producers, Developers, and Explorers and rebalancing as one sees fit. I’m looking forward to continuing to acquire shares in my favorite resource stocks on Summer Clearance Sale. Ever Upward!

    May 01, 2017 01:41 AM

    Thanks for sharing DOC

    May 01, 2017 01:05 PM

    It looks to me like the miners have probably put in a tradeable low. For those who can view it, here’s the 2 hour chart for SIL:

    http://stockcharts.com/h-sc/ui?s=SIL&p=120&yr=0&mn=3&dy=0&id=p21491931038&a=521265754

    May 01, 2017 01:09 PM

    Very sound thoughts today Cory And Doc.
    Looks like the safe havens and conventional markets are about to get routed.
    Trump says he’s going to break up the big banks and bring back a 21st century Glass Steagall act.

      May 01, 2017 01:10 PM

      should make the inside goldman sakers happy………

        May 01, 2017 01:11 PM

        maybe they do not like Lloyd Blankin stien

    May 01, 2017 01:13 PM

    This past week in gold – Jack Chan

    GLD – on sell signal.
    SLV – on sell signal.
    GDX – on sell signal.
    XGD.TO – on sell signal.
    CEF – on sell signal.
    GDXJ – on sell signal.
    A correction has morphed into a consolidation, and the longer time it takes, the mightier the eventual breakout..

    Summary

    Long-term – on major buy signal.
    Short-term – on sell signals.
    Gold sector cycle is down.
    A major consolidation is in progress.
    Holding long for long-term gains.

    http://www.321gold.com/editorials/chan/chan050117.html

    May 01, 2017 01:20 PM

    GSR………..74.40 to 1

    May 01, 2017 01:45 PM

    Excuse me for being a thickie, but why are people on here so keen about USAS – Scorpio Mining Corporation?

    It still seems near quite high all things considered the drop in other miners. Are people buying because they think it is a doubler, or more, from here?

      May 01, 2017 01:55 PM

      Bob UK. – As a group here on the KER, we’ve posted literally hundreds of posts on Americas Silver (USA.TO) (USAS) (USAPF) and all the prior Scorpio Mining tickers over the last few years. You can search for those on the KER and read up on all the commentary, charts, news release dissection, and many different contributors thoughts…… [although really, it was hard to miss all the discussion on it the last few years for anyone that reads through the KER blog posts …. 🙂

      _____________________________________________________________________________

      Here’s a recent Corporate Presentation and a few thoughts though:

      (USA) (USAS) Americas Silver Corporation – #VIDEO #CorporatePresentation
      April 6, 2017 – Zurich, Switzerland
      #Silver #Zinc #Lead #Production #Development

      http://www.europeangoldforum.org/egf17/company-webcast/USA:CN/

      ________________________________________________________________________

      @Excelsior – Watch the presentation (above) from $USA $USAS and at around 19 mins in you’ll see that Americas Silver will actually be leading their #Silver peer group in #FreeCashFlow yield, once they bring on San Rafael later in the 3rd quarter this year.

      Also, they are going to massively increase their #Zinc and #Lead production this year and let their Silver flat-line, because they want to make hay while the sun is shining with their Base Metal credits, and save the high grade Silver stopes for when Silver has a higher price and it makes more economic sense to do so.

      A brilliant strategy and while I’ve followed this company for years, I’m freakin’ impressed with how they’ve turned this around.

      It’s promising that to reduce their costs they did NOT high-grade their silver, but rather reduced their staff, changed mining methods, and increased the base metals output. The risk of Zinc/Lead prices coming down dramatically before the 3rd quarter, where San Rafael comes online is minimal.

      Now that they finally have the NYSE listing for (USAS) there should be increased interest and liquidity on a move-forward basis.

      I fully expect by Americas Silver to be re-rated upwards by the end of the year for analysts that do their homework and compare their valuation on many metrics to their peers like Endeavour, Fortuna, Great Panther, Avino, etc…. Same thing for Alexco when they go into production later this year. Personally, I’m watching for any significant pullbacks to add to positions before that happens.

    CFS
    May 01, 2017 01:46 PM
    May 01, 2017 01:58 PM

    I think one has to remember what is being traded in the silver pits most of the time if not all of the time. PAPER! What is a piece of paper worth with 5,000 troy ounces of silver written on it if no one will trade or supply physical silver at the paper price offered?

    May 01, 2017 01:16 PM

    That is what we have been complaining about for years……….PAPER

    May 01, 2017 01:19 PM
    May 01, 2017 01:22 PM
    May 02, 2017 02:28 AM

    12 days in a row down for SLV and 6 days in a row closing under the bollinger band??? Statistically speaking, that’s got to be like 1 in a million. But Silver did it in 2015 too. Completely rigged, at least in the short run.

    May 02, 2017 02:41 AM

    I like Doc’s take on not dumping his stocks here. He is very wise not to get “cute” here as market surprises will most definitely be coming down the pipe. It would be this week or in 8 months most folks won’t be ready when reality comes back to this 36 year liquidity bubble.

    May 02, 2017 02:43 AM

    Rolling debt crisis will be the order of the day, not corporate buy backs or bank M&A fever.