Silver stocks crazy volatile but huge upside potential imo. Silvercrest dropped a ton today so traders are influencing some of them.
Gold & silver had a wakeup call but so did most metals. I see this as a normal correction, it appears a downtrend is intact but that would be through the eyes of scaredy cats imo. Maybe another down day just to cement the fear mongering, then....
Might be worth noting that WTI Oil wasn't performing very well from $41 to $36 then boom it rocketed up to $53. TSX Energy companies were absolutely dormant or worse then became huge winners for two months. I'm not saying this will necessarily happen with metals now but it could. I suspect any wash out like this remains a buying opportunity for a year or two. However, I am dropping most TSX Silver stocks from my nice list they overreact to the corrections and lack any clear technicals. The Gold miners can be managed far more easily. I believe this is because fundamentally the Silver companies haven't proven they can make money ( yet ) unlike many of the Gold companies that are starting to rake it in. Gold miners were surprisingly resilient this week; stocks like New Gold and OceanaGold barely moved late in the week at Gold dropped $100. The only one I owned on Friday was Calibre Mining which is an absolute steal in the $2-$2.25 range should quickly go back to $2.40-$2.50. I expect this one will be an easy double this year. I traded out of the Golds really well otherwise but took a hit on Friday on 3 Silver plays I still own.
One more down day on gold would be nice, scare the b'jezus outta da weak hands with price going under 200MA. (dumb money have short memories and trigger happy because every 2nd day the world is coming to an end). Then....
Silver itself has great potential and a history of going into bubble moves near the end of these metal cycles. The problem exists with the Silver producers in this area in general are less efficient making money it seems then many Gold producers. So we need $30 Silver to sustain any of these rallies in stocks. Gold miners, many of them will have positive earnings growth ( and other potential benefits like increasing dividends and m&a activity ) even if Gold drops to $1700. I resisted buying Silver miners most of the year other then Fortuna ( more then tripled ) and Silvercorp ( did well then lost all of the profits on my last entry ) most of the year because on a value basis the financial results were unimpressive. Occasionally I saw stocks like Silvercrest and First Majestic have some huge days, but it's not sustainable yet. Silvercrest I'm in a hole on my recent trade.
ASX Gold index took another whack today. (as expected). This just to reinforce the message: markets aren't random, every bar has a purpose. NOT! Every bar has a story, ya, a bedtime nursery rhyme. Now go to sleep with a headache and stop complaining "Fukk you, where's my money?"