Gold & Silver stock disconnect from underlying physical price = Get 'Sum !
Like a kid in a candy store today...
PM stocks historically launch AFTER the first rate cut (and they will).
Odds of an emergency first rate cut just went up exponentially, just as PM stocks
are cratering = textbook buying opp.
The producers that aren't debt laden or likely to issue secondaries to raise capital are
going to print money over the next year at these price levels.
The higher cost producers have more upside leverage, but more downside risk.
Silver stocks like SILV with no debt problems, and with the lowest production cost tier
is the best risk:reward major silver play. HL is a no-brainer with its US/Canada footprint
and this pullback. PAAS is another smart go to here.
NEM on it's big selloff a while back was a no-brainer, I'm holding back on this one to see
if this broad market selloff turns into a longer term crash. AEM is probably the no-brainer
go to major on any major selloff. GOLD a bit riskier, but also among the big 3.
My alternative to the big three is... BTG
I like BTG with maybe the sharpest CEO in the biz, huge global gold production, and 6%+ dividend,
with what I view as the best risk:reward opportunity for an easy 30-50% quick upside move
when the dust settles.
I like SKE as an emerging producer. KNTF as well. EQX has top CEO, higher cost, but that
also gives it leverage.
My 5 year horizon, swing for the fences, 5-10x bagger homerun play here is NFGC at these prices.
I own a shitload. This is one to pass on to the grandkids, pay for their college. The next Kirkland
Lake some say. An Eric Sprott fav as well.
IAUX is another cheap, cheap wildcard, but with more risk of dilution. NEWP in the silver space at this
price is another riskier, but high upside play.
Hat tip to Bog Morriarity of 321 Gold for pounding the table on NFGC one as well. He likes WRLGF as
well. I own a bit of that too.
Putting in 50-60% of available cash into this selloff, holding back the remaining 40%
in case this turns into a 40-50%+ major market crash and/or upon the first emergency rate-cut
by the Fed, which given political pressure, could come at any moment.
Your mileage may vary.
Just some ideas...
Do your own DD as always.
My situation isn't necessarily yours...
That said, all major initial panics are not buying opps, but my gut says this is,
especially with the historic disconnect to the underlying physical price which
makes this equal to the buying opp post the 2008 great financial crisis, and
only lagging behind that long cycle entry many of us old-timers on SI remember
back in 2000 when the rest of the world was all in on tech.
If nothing else, we needed a little distraction from the cultural-political collapse
and something to celebrate, so lets make some money.
If I get a nice trading pop, will skim some off the top for a nice high-end Thermal scope,
I like IRay.
Use the profits from this trading opp to build your preps.
Great time for physical as well, heading out to buy some junk silver later today as well,
as I believe it is the #1 barter town currency to hold. I also think $50+ silver, is when not if.
So get out there and get sum'
SOTB |
