The price of Silver has wallowed around in the same general price area for a very long-time, BUT I suspect that is all about to end soon.
By Goldrunner, Contributing Editor to munKNEE.com – Your KEY To Making Money!
Silver shows an expanding triangle chart formation that is very bullish and we are now entering the 5th wave up of that formation. Thus, I suspect Silver will go through one final correction before it starts to “climb the ladder” back up to around $50.
The expected rise in Gold up to around $2,400 will not come close to the percentage gains in Silver and Silver stocks so, I ask, “Where is the REAL leverage at?” The answer is “in the reserves of Silver in the ground” and that leaves the real price rise advantage to the owners of those ounces in the ground, i.e. the little explorers.
Eric Sprott knows this all too well and is out there buying little explorer companies all over the place, and at a discount in most instances, as he takes the “risk” of doing private placements with those little companies.
Why is Sprott doing that now? Well, “Mr. Market” has a rule that reserves for Silver and Gold cannot start to rise “until the last high in Gold and Silver has been re-tested” yet, with the massive Dollar printing the Fed has put into the “Covid thingy” there will likely no longer be any more “backtests” in the price of silver and gold other than just minor 1/3 retracements – the least that corrections can be.
We are at the point of true risk/reward in the Silver and Gold markets so it is time to take advantage of the situation but, remember, you take a lot of risk with all penny stocks at any time so “BUYER BEWARE” is the rule!
Editor’s Note: The above post is a revised version of an email to munKNEE.com from Goldrunner. This complete paragraph must be included in any re-posting to avoid copyright infringement.
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