Scratching My Head
I have been reviewing a number of charts looking for a candidate to lead into the beginnings of a precious metals rally. The debate between gold miners, silver miners, large established industry leaders vs junior or explorers left me unsure. I have various candidates in each category but will go in a slightly different direction. A strong performer that tends to go with the major trend in precious metals but also tends to lead the trends, is Sprott Inc. Their earnings for the second quarter will be released in a couple weeks. Despite the recent selloff in the metals prices for gold and silver, both were higher for most of the months of April, May and June compared to the 2020 second quarter. The stock market is up significantly, new issues, financings etc, continue to increase. The bottom line for this investment management company, largely focused on mining related companies, should be pretty good for this earnings period. The chart isn’t fantastic but with a pop, could start to look a lot better very soon. This is my candidate for a leader of the coming precious metals rally. I am also going to include two miners, as well. I like both MAG and HL. We will probably get the usual volatility tomorrow, especially after the FED meeting. I used today’s selloff to buy calls on all three.