Loading ...2016 Redux (a different kind of chart)
The group of (primarily) silver stocks shown below increased more than 5 fold during the short-lived 2016 PM rocket launch. They have now retraced that rally nearly 90%. I am scaling into each stock and will await the inevitable rocket launch #2. It’s coming, I just can’t tell you when! Can these stock continue downward? Likely in the short-term, but I doubt if they are going to zero. I am placing my bets now and changing by login name to gamblerscott!
I prefer to invest instead of gambling. If gold goes north 1450-1550$ several gold miners could double or triple. With silver stocks it all depends where silver price will be at that moment, additionally not any of these silver producers is making money at current prices. We need 25$+ silver in order for these names to make some money, by then gold could be at $1700 and most mid cap gold names will be making tons of money and will be up at least as much as these silver stocks with far less risks.
I agree approximately with Alex33 other than that I am not sure that investing (as opposed to speculating and gambling) is possible in any sector any more, really.
At least several of these companies, have tainted managements, one way or another: histories of really selfish or bone-headed decisions, either at these companies or elsewhere on their resumes. In any case some or all of the insiders may tend to overpromote and overpay themselves even more than is standard. I haven’t looked at their charts in the past week or so, but I doubt I would want to be eating while looking.
I don’t look at charts the way most people do, so I may provoke derision, but in contrast I find Alexco’s chart to be somewhat attractive. I have held it for years and if I had more cash I would buy more (in fact I am looking for more things to sell if its chart improves slightly). I think Alex33 has written favorably of MAG, and I don’t mind holding it. It has some significant pluses and despite not being at the bottom of the cesspool should do well if Ag rises. I can think of several one tiny but poorly known companies that Spock has recommended that I would consider excellent gambles, that I do not think it would be fair to name, even perhaps the one that I bought a little before he recommended it–these may have super fundamentals and not necessarily grubby or incompetent managements.
I don’t gamble on the horses but if I did, whether throwing $ at the extreme longshots or the likely winners, I would try to get the best of the long shots and the best of the whatever it is they call the ones who aren’t longshots.
But it is true that if Ag rises these companies’ stock prices will soar towards the heavens. It may be the best strategy if you time it right.
IMPORTANT disclaimer!
Over the years I’ve made huge killings in the PM markets. I have also been devastated with what were in retrospect idiotic moves. I am not only not a pro, but not even a good amateur. I know some stuff and have been lucky on the average–perhaps in the order of being better to being lucky than good.
Personally, I consider entities like KL, RGLD, Newcrest, OR, FNV, you name it, to be scary treacherous gambles (the 1st 3 are 3 of my 4 biggest holdings–I don’t own the 4th). Alexco and MAG are orders of magnitude more dangerous. I could name a couple of silver penny stocks that neither Spock nor “Otto” (of IKN), whose services I subscribe to, have recommended, that I have bets on, but I am really scared of leading people astray by mentioning these penny stocks. So, everyone, please do your own studying, carefully, if I drop symbols or company names. I might be a contrary indicator.
Exk is making money
Buy low, sell high 🙂
Companies like HL look F’d. The 2016 low didn’t offer any resistance…imo that means much lower levels will be plumbed. I also have no major timing dominoes on the near horizon. It’s not impossible that HL finds the bottom of the channel at a quarter. This is clearly an impulse move down…i’d be very careful here…holding a bag could happen very quickly and imagine what your powder could accomplish if an epic melt down occurs. Cheap can always get cheaper
https://www.tradingview.com/x/FW12MrtY/
I personally don’t know who would want to invest in that stock – the chart just looks horrible and it looks to be heading lower – why invest in something for a spike ? No sustained trend (besides Long term down )
Fully agree, I believe it looks too easy that the 2016 rally will repeat. I would prefer to BUY names like GOLD,AU,.. and some other mid cap names that are trading above their 2018 lows and are in a technical safer position. These names and are currently retracing part of the first up move since mid 2018 and should bottom soon. Stocks like CDE and HL are in unknown territory and more than very risky.