Weighing the Upside vs Downside Risk For Precious Metals
Dave Erfle joins me today to share some more details on his recent article over at Kitco where he outlines the risk/reward balance for gold and silver. He also shares some of the qualities in the stocks that he is investing in as well as a stocks he is looking forward to some news.
Click here to visit Dave’s site for more information on his newsletter.
Is This A Good Time To Invest In Silver?
Brien Lundin, Chris Marcus, Charlotte Mcleod Video Conference
Arcadia Economics •Premiered 13 hours ago
Silver futures prices up to $18.40s today… and the silver miners are surging.
There are an abundance of calls from pundits in forums and interviews and written pieces advising folks to pull profits in the miners, which seems to be happening a bit in many miners as they spiked up earlier and giving back some gains during the afternoon session, but this may allow the markets to keep creeping higher climbing the wall of worry.
Having said that, there is nothing wrong with taking a bit off the top. I trimmed back just a few positions today, but am just in hold mode with most positions.
I also initiated a few new positions this week with some of my cash, to get something in place in case the miners surged and didn’t keep pulling back. I’m happy to add to my positions if we see a corrective move in the next week or two, as I’ve got more dry powder to fire off.
Good luck to everyone in their investing!
Eric Sprott was nearly euphoric with Craig on his Friday wrap.
Rightly so… he probably made a fortune this week.
I was surprised to hear in another interview that David limited all of his positions to 4% or less. I’m not ashamed to say I’m @ 19% in SILV
I have the same basic approach with my largest positions in the 3-5% and my smallest positions around 0.5%. Occasionally a larger position will jump up to 6-10% like what happened to me with Silvercorp, Alexco, Santacruz, Argonaut, and Impact earlier in the year, and I had to trim them back a bit into the strength to reduce down their position sizing in the portfolio.
I’ve got a lot of positions though, and have considered starting to consolidate them down where positions could be 5-8% of the portfolio of the future.
I have Silvercrest at 8.5, Irving @ 9 even, Ely moving past to 9.7 and Great Bear after early sales up to20%. Everything else is 5 or less. I have sold 60% of Silvercrest, 20% of Irving, 15% of Ely and 20% of Great Bear but not recently on any of those. There are so many opinions on what will happen next that I am waiting to see what happens after Monday as TPTB like to take Mondays down. But its different this time…maybe.
I will be glad when silver pops through $21-22…..then watch the cup fill to the brim
will people be able to handle it…..,……..cup and handle it….. 🙂
Once the 2016 silver surge high at $21.23 is eclipsed, the cupeth will runneth over.
🙂
Here is a great visual……….on silver…….relating to other assets etc….
https://www.visualcapitalist.com/all-of-the-worlds-money-and-markets-in-one-visualization-2020/
+1 OOTB
I posted that same visual capitalist piece on yesterday’s blogs, but it is well worth people checking out Silvers market compared to Gold’s or the General stock markets, or the National Debt.
It won’t take much money flowing into the Silver market to really move the needle in a substantial way.
Sorry,….did not see it.. but,,…..great minds think alike…. 🙂
Agreed. It’s quite a startling juxtaposition of markets.
I think Chris Marcus had a hard time answering questions, Not used to be on the other end of the Mike.
The Gold/Silver Ratio Begins To Trend Lower
May 29, 2020 – Andrew Hecht
https://seekingalpha.com/article/4350796-gold-silver-ratio-begins-to-trend-lower
METALS NEARING CRITICAL MOMENTUM FOR NEW PARABOLIC RALLY
May 29, 2020 – The Technical Traders – Chris Vermeulen
https://www.thetechnicaltraders.com/metals-nearing-critical-momentum-for-new-parabolic-rally/
Any thoughts on Group Ten Metals drill results? It got me buying some.
They were awesome just like the last few sets of drill results, and that is why (PGE) Group Ten Metals was up 12%+ on the day.
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(PGE)(PGEZF)Group Ten Reports High-Grade Gold, Palladium, and Platinum Results from the Pine and HGR Targets at the Stillwater West Project in Montana, USA
29 May 2020
> Drilling at the Pine target returned values including 16.94 g/t 3E (16.19 g/t Au, 0.24 g/t Pt, 0.50 g/t Pd) over 7.98 meters and 31.02 g/t 3E (28.7 g/t Au, 1.06 g/t Pt, 1.27 g/t Pd) over 2.6 meters hosted within the chromite-rich ultramafic stratigraphy.
> High-grade gold, palladium, and platinum values ranging to 16.18 g/t 3E (13.80 g/t Au, 1.10 g/t Pd, and 1.28 g/t Pt) were returned in rock samples taken by Group Ten in 2019 at the Pine target, with a total of 13 samples returning from 2 to 30 g/t platinum equivalent grade mineralization to date by the Company.
> At the HGR target, nine kilometers east of the Pine target, high-grade gold, palladium, and platinum values ranging to 19.06 g/t 3E (14.30 g/t Au, 3.10 g/t Pd, and 1.66 g/t Pt) were returned in assays conducted by the US Geological Survey (“USGS”) on select samples of historic drill core from the HGR target area at Iron Mountain that had not previously been assayed for precious metals.
https://ceo.ca/@accesswire/group-ten-reports-high-grade-gold-palladium-and-platinum
Gold, silver and platinum flex their muscles
Todd ‘Bubba’ Horwitz – Friday May 29, 2020
https://www.kitco.com/commentaries/2020-05-29/Gold-silver-and-platinum-flex-their-muscles.html
GARWF just recently reported a high grade discovery in Paraguay. It’s stock yawned a bit…
Ex or anyone any idea what happened with WM 15 minutes before closing when all hell broke loose
Hi monty bissett. I don’t really know, but saw some chatter that it had been added to an index and number of funds were buying it today near the close, but I’m not sure I buy that either. There was about 10 time the normal volume, and WM was up about 26% on the day, so it seems like some insiders know something big is about to go down next week.
It will be interesting to see why there was a sudden frenzy of buying at the end of the week and end of the month in such a massive buy.
IPT broke out of a big 3 year bullish basing pattern last week and gave good confirming follow-through this week while posting its best weekly close in 3 years:
https://stockcharts.com/h-sc/ui?s=IPT.V&p=W&yr=6&mn=11&dy=0&id=p92768073305&a=762108241
IPT was on quite a tear this week. Really impressive action there.
impressive Matt!
silver looks very strong…Many folks including yourself and on here kept saying it was the place to be. Bob, and gary as well. I hope many listened. My only regret was selling out early from aurcana. Still a profit is a profit. Glad i bought a decent amount of impact..
I added more to Aurcana my friend, and believe there is still PLENTY of upside left in AUN so you can always jump back in for the ride higher.
The important GDX speed line breakout has held for 4 straight weeks:
https://stockcharts.com/h-sc/ui?s=GDX&p=W&yr=10&mn=0&dy=0&id=p45267459372&a=542616395
The XAU’s move above the important 600 week MA has held for the last 6 weeks:
https://stockcharts.com/h-sc/ui?s=%24XAU&p=W&yr=7&mn=7&dy=0&id=p54654279859&a=699164164
Silvercorp Metals declares $0.0125 dividend
May 28, 2020
https://seekingalpha.com/news/3578198-silvercorp-metals-declares-0_0125-dividend