God forbid, I ever out grow thinking that God is not as great as he is. He’s a lot greater than this world because the Bible says the Earth is his footstool creator of all things including the whole universe. God is everything. God sustains life itself and no one would be able to survive without him. The Holy Spirit is what holds back the majority of the evil and wickedness. That won’t always be the case though. This is a very heart-wrenching tragic lesson coming for those that assume that the age of grace will always be with us. Everything will change in the blink of an eye like a thief in the night. It’s going to come when no one expects it during good times and while everyone’s getting they’re free handouts universal basic income. Full blown socialism that turns into a complete catastrophic event. Take a ride down history Lane.

No one’s going to be able to change that. We are past the point of no return.

Ditto……….I agree………note taken……. 🙂

The GSR’s movements are not without rhyme or reason and the conditions that underpinned gold’s outperformance have been priced-in and are now mostly gone. From here on, any outperformance that gold delivers versus silver will be countertrend in nature. The same goes for gold versus the gold/silver miners. Gold went “ten-bagger” (900%) versus the XAU between 1993 and 2015 and has already fallen by as much as 50% versus the XAU since that trend ended. It will fall at least 80% more from here in the years ahead and probably more than that.

I think , you are spot on………

I agree aboutthe rest of the year belonging to the Silver stocks and have moved things around over the last few months to increase my Silver exposure some by trimming back gains in the Gold stocks. I could seem them both doing well, and both moving higher together, but Silver having more torque and a smaller concentrated market that can move up quicker when the money comes pouring in.

I believe those with a nice exposure to a basket of Silver stocks or even the ETF SILJ will be very happy by this time next year.

SILJ has already beat GDX by as much as 57% since late March and is just getting started…
https://stockcharts.com/h-sc/ui?s=SILJ%3AGDX&p=D&yr=0&mn=9&dy=0&id=p14853544219&a=745541155

In 2016, SILJ beat GDX by as much as 123%…
https://stockcharts.com/h-sc/ui?s=SILJ%3AGDX&p=D&st=2015-11-18&en=2017-02-04&id=p80465569241&a=745541155

I’m excited to see where Silver miners may run this part of the bull cycle.

Sitting on a little dry powder to deploy, and plan on using most of it for Silver stocks, but keeping a bit for Gold & Uranium companies as well.

Still @ 23% cash. Just added to SILV @ $7.96. Sold a bunch @$9.09 & $9.16

Seems quite reasonable. +70 Time for Silver to play a little catchup.

70 is a long ways down but that March blow-off probably gave us just what we need to get it done and is already behaving that way. Such spikes rarely end with a drift lower; they tend to end the way they began: abruptly and followed by decisive quick moves.

Symmetry in force to reach more an equilibrium.

What goes up must come down.

Based on the weekly charts and other things, I bet June will be a great month. Maybe IPT will fill last week’s gap tomorrow:
https://stockcharts.com/h-sc/ui?s=IPT.V&p=W&yr=6&mn=11&dy=0&id=p21480148414&a=544288722

The same for SLV would also be nice:
https://stockcharts.com/h-sc/ui?s=SLV&p=W&yr=3&mn=0&dy=0&id=p64334544562&a=759267131

Maybe that is what USAS is doing today. Brixton has also been weak last week and starting out this week. But for now I have not sold any shares in any silvers. Matthew, do you own any Silver Bull?

If that gap in IPT gets filled in the near future, I made add one final tranche there.

Charles, I do not own Silver Bull. The chart looks ok but be ready for a financing announcement during the next show of strength (if management is smart). With roughly $1.6 million in cash and cash equivalents as of the end of January, the company is sure to raise capital soon if it gets the chance.

Unless I thought it had some company-maker drill holes pending, I would buy more Brixton before Silver Bull. That happens to be a self-serving opinion but I have enough exposure to Mexico and like that Brixton has plenty of cash as well as assets in the ground. Exploration plays with no such assets usually see excitement late in a bull market when speculative appetites are running wild. I mention Brixton because the two have similar market caps and no production.

Perhaps more pressing than a probable financing are the 18.3 million warrants outstanding with less than a year remaining to exercise at 15 cents. Not advice but I’d be an aggressive seller on the first significant move above that level and probably sooner.
If exercised, those warrants would bring in roughly $2.75M and dilute you about 8%. Not necessarily a big deal if silver is flying and the company has a great property but something to be aware of.

Silver Bull has been around since November, 1993 and has never generated revenue while incurring an accumulated deficit of $130 million.

At least the great name could attract a lot of interest years from now when Joe Blow shows up. I hope Brixton Metals will be Brixton Silver (or gold) by then!

Thanks Matthew. Sounds like a pass.

Yes, Silver Bull is one I’m looking at for after they finance their next phase of the journey, but from an optionality standpoint they have one of the larger undeveloped Silver/Zinc/Lead deposits on the planet based on their resource estimate of around 442 Million Silver equivalent ounces, coming in only behind MAG Silver, Discovery Metals, and Bear Creek based on the size of their deposit.

However, as we’ve pointed out on here before, a better name for them would likely be Zinc Bull, as if their ounces were converted to a Zinc Resource with a Silver credit, it would also be one of the largest undeveloped deposits out there. This is why prominent big boy base metals producer South 32 has a JV partnership with Silver Bull — for the Zinc.

If there is a rise in both Silver and eventually in Zinc & Lead this will be a perfect storm for Silver Bull in that kind of environment, and a likely takeover suitor would be South 32.

Check out this table from Southern Silver’s corporate presentation that shows most of the key Silver deposits in both over all size and grade in Silver Equivalent resources:

http://cdn.ceo.ca/1fcrj5t-Silver%20Depost%20Sizes%20and%20Silver%20Eq%20Grades.JPG

At 50g/t, silver is relegated to byproduct status but the value could be meaningful when silver is much (MUCH) higher.
One ton of Silver Bull’s rock currently contains about $70 worth of zinc and $28 of silver. If those figures were reversed, SB would probably be trading at triple the current market cap (just a guess).

I see Silver Bull as more like a Trevali (TV) where it will suffer while Zinc & Lead prices are low, but it does have a silver co-credit kicker which will only get more valuable over time, but ultimately it is an optionality play on higher metals prices, and in particular Zinc.

They should just change their name to Zinc Bull, and market the project that way with Silver as a helpful co-credit, in the same way certain Nickel or Copper projects take advantage of Silver/Gold/Platinum.

They do have their deposit broken out as both a Silver equivalent resource and a Zinc equivalent resource on their presentation, so that investors could interpret the economics and resource either direction, but ultimately its a really large lower grade base metal deposit, and still seems likely to get acquired to develop down the road.

Is Trevali also just 50g/t? That’s a terrible grade for silver and keep in mind that the value I gave SB’s rock did not account for recovery and we know it’s probably not going to be close to 100%.

Well Trevali is a Zinc company, not a Silver company, with 4 operating Zinc mines, but my point was that they simply list the Silver component at a co-credit. I believe Silver Bull would be better off using this same approach.

https://www.trevali.com/operations/Mineral-Reserves-and-Resources/default.aspx

Thanks Ex and Matthew for the discussion of Silver Bull. I was hoping to add one more silver producer/explorer with a large economic resource to the mix preferably in Canada or the U.S. I already own too much Brixton on a percentage basis and planned to reduce some of my initial buys in the .15 cent region. On a percentage basis I now own more Brixton than Impact, so maybe I will just add there, but like Matthew said, between USAS, Impact and a few other mexican silver miners I probably have enough exposure to Mexico. I have thought about MAG and Bear Creek in the past so maybe those would be good options. Or maybe I’ll just add more to Dolly Varden. Thanks again for the info.

Charles, I hope you got filled this morning. IPT is already a nickel off its low.
Despite my focus on buying more Brixton lately, my IPT position is still about 95% larger.

Hi Matthew – I am actually pretty happy with where I am at with Impact. On ISVLF I still think it has a little downside left. I could be wrong, but would only add on a more significant pull back which I realize might not happen.

Hi Charles, it sure will go lower if silver does. I’ve been surprised by the aggressive buying so far but volume hasn’t been impressive which bodes well for you getting a better deal.
https://stockcharts.com/h-sc/ui?s=IPT.V&p=D&yr=1&mn=1&dy=0&id=p13197303215

Thanks for the chart. Brixton sure is taking a beating this morning. It looks tempting, but I am going to wait to see what the afternoon brings.

Hi Charles and thanks for the response back on the Silver miners.

If you are looking for Silver companies without the exposure to Mexico, then yes, as you mentioned (DV) Dolly Varden is a good choice expanding their Silver development resource in the Golden Triangle of B.C.

I’d also recommend (BHS) Bayhorse as US/Canada focused Silver developer and near term producer.

Another Silver developer that has been moving nicely is (AUN) Aurcana Corp. Their small but extremely high-grade R.V. Mine is getting ready to go into production this year.

Of course there is my favorite pick of the North American litter (AXU) Alexco, but if you don’t have a position in their neighbors (MMG) Metallic Minerals, that is another great way to play Silver exposure in Canada. MMG had some absolutely bonanza grade exploration results this week.

Good luck in your investing amigo!

Thanks Ex. I do own some Metallic but not a large position. It was up over double after yesterday, and have been thinking about adding due to that new drill result they announced a little while ago. Do you expect AXU to eventually make a bid to aquire them. That would be one heck of a deposit if they did combine.

As you probably guessed, I bought more Brixton today.

With regards to MMG Metallic, Greg Johnson has mentioned in interviews that they’d be open to doing a toll milling arrangement with AXU Alexco if they don’t find a large resource. However, he also said if they keep hitting the high grade extensions at Keno Hill (which they clearly are), that they’d be more apt to partner with a larger producer and build their own stand alone mill, since the road access, power, water, and ease of permitting are already there from decades of prior mining and Alexco’s efforts.

I’m sure if Alexco made an offer to buy them out they’d consider it, but AXU is busy at present getting all their ducks in a row to go into production by year end.

Honestly, I’d rather see MMG keep doing the exploration work to increase and expand their deposit, and work on their other nearby Gold/Silver deposit some as well before getting anywhere close to a company offering to buy them out. They still have room to be a multibagger on great exploration work first, and then they can get into the development path a bit deeper.

I want to see MMG keep doing great exploration work like this and keep hitting the bonanza grades over wide intercepts, as they’ll have a stand alone monster deposit, and likely bring in a larger JV partner.

If AXU ends up grabbing them early, that won’t hurt my feelings either, but I’m not invested in MMG for that outcome.

___________________________________________________

(MMG) Metallic Minerals Announces High-Grade Silver Samples and 3D Modelling at its West Keno Targets on the Keno Silver Project including Formo, Silver Queen and Duncan Creek
26 May 2020

> 7,459 g/t $Silver Equivalent over 45 m
> 33 m lateral width grading 1,795 Ag Eq
> 44 m lateral width grading 2,258 Ag Eq

https://www.metallic-minerals.com/news/2020/metallic-minerals-announces-high-grade-silver-samples-and-3d-modelling-at-its-west-keno-targets-on-the-keno-silver-project/

Yes Matthew – I knew you would be buying more Brixton hand over fist. I would have liked to when it was down 10% today, but I would have had to sell something else in my taxable account and I am pretty balanced out except for Brixton. I got a little carried away earlier this year and it is now my largest position in shares and in value. If anything I will eventually need to trim back although its position size shank a bit today as most of my other shares were up on the day. Nice turnaround to end the day. I am still not totally convinced we are off to the races as the weekly bollinger bands look to wide to me. In any event, I am fully invested and will enjoy the ride if it comes.

Ex – Thanks for your thoughts on Metalic. I think I will put some focus on it.

Now Chris,
would you be willing to entertain the notion that China might step in a print a few trillion a la Fed and help add help stoke a silver spike too? Copper would blow up. Surely they will have to play ball with all the other central banks in the coming months as Covid-Round -Two appears. After all it’s only paper.

Mr T – All of those conditions do not have to be met for Silver to outperform Gold.

Silver has been outperforming Gold all quarter when none of those conditions are met.

Technically it has more catching up to do with Gold, and it will likely take out it’s 2016 surge high of $21.23 later this year without that list of criteria being met.

In 2016 Silver and the Silver stocks outperformed the precious metals counterparts in Gold and Gold Stocks quite handsomely without those criteria being met.

What will drive the price higher is investment demand in the monetary metals, not the industrial metal backdrop.

No Chris, I always knew that the Fed would do whatever it takes to destroy the currency and now the market is figuring that out. Deflation was never the problem that the deflationists think it is because the Fed was never going to allow it. I’m talking about the real definition of inflation: the increase in the supply of currency/credit. The Fed cannot create wealth or prosperity out of thin air but it can ALWAYS inflate (and therefore debase) its currency. How do you think the Dow made it to nearly triple its real all time high (that happened 20 years ago)?

For various reasons, I do not think the Fed’s actions will have the same effect on the stock market as they’ve had for the last 20 years. Instead, I see their efforts making life more expensive while the economy remains stagnant at best (I repeat, at best). Trump or whatever chump is in charge will go full FDR and then some (and the drooling class will cheer). Those who understand it will see the train wreck for what it is while the masses happily give up what’s left of their freedoms.

The dollar has not been strong at all in real terms which is why gold is up nearly 7-fold since 2001 and 35% just since one year ago. It won’t be long before it begins its fall in relative terms as well but that does not have to occur in order for the Fed to have its way with it. The debt problem is global so the plan could very well be to take down every currency simultaneously, at least roughly. If that’s the case, the dollar could lose any amount of its purchasing power without giving up its current 100-ish USDX handle. In addition, such a strategy would benefit the planners since most would not recognize the decline in the buck unless/until the USDX falls. That’s a very valuable benefit when the powers that be are wrecking the currency at record speed.

Gold is ugly and short term oversold versus silver currently but looks like it will go even lower before it has a good bounce.

https://stockcharts.com/h-sc/ui?s=%24GOLD%3A%24SILVER&p=D&yr=1&mn=3&dy=0&id=p25991287913&a=715792181

Future blips of gold outperformance might line up with future covid bs or stock market weakness but they’ll be tempests in a teapot.

Great points on the FED not allowing a full deflation, and on more of a stagflation type of scenario with weak economy, inflation in credit supply and certain asset classes, and yet a low to zero interest rate environment.

In addition, the point you made there and have made before about the US dollar relative to the basket of other currencies, being much different than the US dollar relative to Gold is very key to understanding the charade being played.

Yes, the dollar may stay levitated in the high 90s or low 100s relative to other fiat currencies in the dollar index (that are trashing their economies, increasing debt loads, and printing money at similar rates to the US in a race to the bottom), but that just presents the illusion of “strong” dollar.

The best way to view the Greenback is in relation to “real money” the Yellow Metal. Compared to Gold, the Dollar is losing purchasing power, and has been crashing or falling in value compared to real money for decades. Sure the Dollar may go up in nominal terms compared to other currencies while Gold is going up at the same time, but if Gold is going up in Dollar terms, then it is outpacing the Dollar, and the Dollar is falling in real terms compared to Gold.

This is indisputable and this same effect where Gold is rising relative to all other currencies, and demonstrates why the barbarous relic is still one of the best stores of value and purchasing power on the planet.

Sound money rewards virtue and punishes vice. It’s that simple and the central planners won’t have it.

When was the last time a high school teacher, university professor, Hollywood or the MSM cast savings and living within one’s means in a positive light? When was the last time the same bunch promoted thrift and investment and warned of the pitfalls of debt and consumption? The fact is, the central planners (which own the “right” just as much as the left) are at war with the sound behaviors that provide us with prosperity and real freedom. Just research the real meaning of “sustainable development.”

Democracy will be used to finish off the good guys once the majority is dependent on the wealth redistributing powers of the government (and it looks like we’re there). To add insult to injury, the good guys will be (and long have been) successfully vilified and demonized while the looters are held up (and long have been) as virtuous heroes rather than the subzeros they really are.

Bob Moriarty | It’s Time to Buy Silver!

“In this interview, Bob Moriarty of 321gold sits down with Maurice Jackson of Proven and Probable to discuss a number of important topics…”

> Maurice Jackson: – “Well, I think what a lot of investors were looking at, with all the printing and devaluation of the currency, the immediate response was silver should jump, gold should jump. And gold has actually made a little move, but silver has kind of remained stagnant. Which metals have your attention, at least, and why right now?”

>> Bob Moriarty: – “In 5,000 years, the highest the gold-silver ratio ever got to was 101 ounces of silver to buy one ounce of gold. In the middle of March, it went up to 121:1.”

“Silver is the easiest call for an investment that I have ever seen. Period. I don’t care that gold’s at the top. I don’t care if gold stays sideways and I don’t give a care if gold goes down. Silver is going to gain value substantially against gold. It literally is the best time in 5,000 years to be buying silver. And I am not a silver bug. Silver bugs are nuts. I mean, they’re bat crazy. They worship silver. Gold and silver are not something to be worshiped. They represent real value, and I believe that we will go back to a gold and silver standard, but there’s nothing you need to worship about it. But as an investment, silver is a good deal.”

https://provenandprobable.com/bob-moriarty-its-time-to-buy-silver/

Gold may reach a record by year end as investor need creates ‘more demand than the market can handle’
May 22, 2020 – MarketWatch – Myra P. Saefong

“U.S. gold prices are likely to gradually increase over time,” says Darwei Kung, portfolio manager and head of commodities at asset management firm DWS Group.

An increase in individual investor demand has been “offset by reduced demand from central banks,” as many of these bank reserves are being depleted due to the economic downturn, he says.

The most significant supportive factor for gold is the “amount of debt being created to fund the various global monetary and fiscal deficits,” says Peter Grosskopf, chief executive officer at Sprott Inc.

Against that backdrop, gold is experiencing a broad rally, with “participants ranging from state funds to pensions to [high-net-worth] clients to hedge funds.” Still, the precious metal hasn’t been able to reach record levels, as “all assets are still dealing with the deflationary shock and liquidity crisis that were accompanied by a global U.S. dollar shortage,” Grosskopf says.

https://www.marketwatch.com/story/gold-may-reach-a-record-by-year-end-as-investor-need-creates-more-demand-than-the-market-can-handle-2020-05-22

That presentation did do a better job of unpacking the Abitibi Royalty spinout model, the Val d’ Or and International Prospect Ventures spin outs, and the JV/NSRs on their projects optioned to O3 Mining, Bonterra, and Sirios.

In the beginning we all lived in caves but the Silver Bugs never got out! LOL! DT

Actually they finally let the Silver Bugs out of the Caves in 2017 during the height of the Bitcoin craze to make room for the next generation… (lol)

https://thumbs.dreamstime.com/b/silver-golden-bitcoin-cave-precious-stones-bitcoin-cryptocurrency-silver-golden-bitcoin-cave-gem-stones-104483133.jpg

I’m checking out their video overview which was well done:

http://compassgoldcorp.com/investor-presentation/

Apparently there are some angry investors over at ceo.ca because they are de-emphasizing Farabakoura moving forward to work on other projects. I’m still getting up to speed, but if a company with multiple properties is looking for something on a exploration model, and don’t find it, then they need to move on to other projects, so if that is what is happening then I commend them.

I will say one reservation I have is Joe Conway. I didn’t care for the way he handled things at the end with Primero at all and he got on BNN and was completely disingenuous about their strategy and said they were fine for the turn around, only to gut and raid Primero in the next few months. He’s going to have to do a damn good job to earn my respect back on this one.

Yeah, it may be best to split the allocation into 2 more tranches. 1 in this range, and a bigger one at the gap window. Thanks!

I assumed you already have a good position because if you don’t, I would consider being more aggressive. Maybe buy two-thirds now and one-third on the gap fill.
Of course I am also assuming you are as bullish as I am and believe that the risk lies in being out of the mining shares. Know thyself, as always.

Good thoughts Matthew. Yeah, Alexco is my 5th largest Silver position, but I was just thinking of adding a bit to it that I trimmed back on the 18th. If things ran from here in the Silver miners I’d be more than ready for the ride, but just looking to deploy the cash raised from trimming at higher prices, but concerned the correction may last a bit longer in a few of these silver stocks.

USAS also has an initial gap down a bit lower near 2.16 that may be a good spot to add.

Sorry, I got sidetracked. USAS is showing relative weakness (look at MACD and price below 20 day MA) but looks like a good deal right here…
https://stockcharts.com/h-sc/ui?s=USAS&p=D&yr=0&mn=6&dy=0&id=p88554638627

Thanks. Yeah, I trimmed a bit when it broke out above the B.B., but now that it is down below the 20 day MA it is more of a concern that if it had bounced hard off it.

I may watch and wait to see if that lower Gap gets filled. Much appreciated.

SLV is hanging onto its KAMA:
https://stockcharts.com/h-sc/ui?s=SLV&p=D&b=5&g=0&id=p67333997883

From a weekly perspective, silver looks like it wants to shoot higher before taking a break. Notice that SLV’s low this week/today was one cent above last week’s low. The SLV gap is probably not a concern to smart money since it only exists because of Memorial Day.
https://stockcharts.com/h-sc/ui?s=SLV&p=W&b=5&g=0&id=p84434501175

No silver gap to go with that SLV gap:
https://stockcharts.com/h-sc/ui?s=%24SILVER&p=W&b=5&g=0&id=p18998375013

Good point about the gap in SLV being caused by the markets close on Memorial Day.

However, it does look like a Hanging Man candle so far today, so a mild pullback for a few days wouldn’t be out of the question either. That gap would get filled if that played out.

Yes, it was encouraging that Silver didn’t have the gap that SLV had.

The Hanging Man is just a Hammer that happens at a high and I don’t see that in SLV today.
http://www.chart-formations.com/candlestick-patterns/hanging-man-and-hammer.aspx

Exactly, that hanging man candle is happening in the SLV on that weekly chart you posted.

http://schrts.co/UyqJawgR

Obviously, since we are still mid-week we’ll have to see how it closes on Friday, but it was just a concern at first glance.

http://cdn.ceo.ca/1fct9gn-SLV%20Chart%20Hanging%20Man%20Weekly%20Candle.JPG

I see. Well I have to say that I am not real worried about that working out but of course it could.
I don’t see the top we’ve just had as anything other than a short term top and a weekly reversal looks very unlikely to me.
A 3% rise from here (“here” being 16.10) by Friday’s close would essentially eliminate the pattern as would a small decline of say .5%
The smaller the body of the candle relative to the shadows the better the pattern so the worst thing this week would be a close that matches the open.
https://school.stockcharts.com/doku.php?id=chart_analysis:introduction_to_candlesticks#hammer_and_hanging_man

Yes, good points on it being better if it is not a smaller bodied candle as it would match the hanging man description more appropriately, and would actually be better to close down a bit further for a longer weekly candle and get it out of it’s system, so that next week’s candle could be a green bullish one.

There is always a chance it could still surprise folks and end this week green as there are 2 more trading days. We’ll see what Friday brings and I’d prefer to see things keep running, but if there was going to be a weekly bearish reversal, then I’d want to wait to add more to stocks until the next few weeks.

Here are Wednesday afternoon I’ve notice a reversal in many of the stocks and they’ve clawed back their losses, and many have now flipped to bullish on the day, so a lot of buying is coming into the markets which is quite encouraging.

Sorry, I was very unclear. I should have said the smaller the body of the candle the more legitimate the pattern is so we do NOT want a small body relative to the shadows. The rest is correct. A 3% move up or a .5% (or more) move down would give us a big enough body to make the hanging man very questionable.

To your last point, I think there’s a pretty good chance everything silver and even gold goes very green by Friday. We’ve had quite a turnaround today so far.

Btw and fwiw, I know you were clear on my comment.