Friday , 23 October 2020

Sprott Believes Silver Explorers Are the Place To Be (+4K Views)

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 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 rise up to something like $20.5 – maybe $21 – and then 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.

Some Penny Silver Stock Examples

IMPACT Silver Corp. (TSX-V: IPT)

If silver runs up to approach the $50 price level, again I would not be surprised to see it hit both targets listed on the chart.

It’s price appears to be early in a 3rd wave run with the technical indicators looking great for the intermediate time period.

MAX Resources Corp. (TSX-V:MXR; OTCPK:MXROF)

Another silver stock I like is MAX Resources (I own some shares) and the chart appears close to a break-out!

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!

Disclosure: Please understand that the above is just the opinion of a small fish in a large sea. None of the above is intended as investment advice, but merely an opinion of the potential of what might be. Simply put: The above is a matter of opinion and is not intended as investment advice. Information and analysis above are derived from sources and utilizing methods believed reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Comments within the text should not be construed as specific recommendations to buy or sell securities. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities. Do your own due diligence regarding personal investment decisions. In the interest of full disclosure, GOLDRUNNER is personally invested in the Precious Metals sector including various Precious Metals and other individual stocks. GOLDRUNNER reserves the right to modify or eliminate any or all positions at any point in time.
Editor’s Note:  The above post is a revised version of an email to from Goldrunner. This complete paragraph must be included in any re-posting to avoid copyright infringement.

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  1. What’s your target for IPT?

    Looks quite ridiculous .