From Collin Kettell: Precious metals analyst Brad Cooke feels we were in the usual summer doldrums with silver mining stocks declining and consolidating.
August has been pretty dreadful in the metal markets, flat earnings have caused sell offs. The sentiment was quite negative until the last couple of days. Things seem to have begun to turn around after the recent news about North Korea and the inactions in regards to U.S. legislation. Both gold and silver have broken their short term trends. We might be looking at a multi-week uptick from here.
The next secular move in gold and silver are based on fundamentals, not the Fed, Trump or Korea. They have everything to do with global debt and deficits. Korea happens to be today’s trigger the next wave up will be a different trigger.
Brad discusses recent developments with Endeavour Silver how they have recently hired a new VP of engineering and formed a technical service and mine development group. They have a lot of news coming out over the next few months in exploration and potential discoveries.
Endeavour is a higher than average cost producer, and our cash flow leverage is higher than most. A swing of $1.00 in the price of silver has a bigger effect for them than most companies. He thinks Silver is moving into a multi-year secular up leg.
The iShares Silver Trust ETF (NYSE:SLV) closed at $16.17 on Friday, down $-0.01 (-0.06%). Year-to-date, SLV has gained 7.02%, versus a 10.22% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Palisade Research.