No fanfare could, and most likely will, reverse in a heartbeat here and without warning.
We're certainly at the cash-in-bank only price now at 7p - I had 8p before the enlarged issued but this is the bottom here peeps barring any remaining 6.6p holders looking to flip for <10%.
China are lining up their next round of retaliatory trade war action - their pot is relatively empty in terms of tariffs because of the trade imbalance so action like restricting Rare Earths (either via their own or other's resources ............) really could happen and I wouldn't be surprised if they doubled-down to put Trump on the backheel.
Interesting link from that to this:
A company with a big bunker in Germany for safe storage of Rare Earths, rather than Gold/Silver, as a direct investment in the metals themselves.
Most of my money has a 6+ month view so far this year - I'm just adding to my favoured plays as and when they dip with a view on 2020 Q1+ for the proper win so I'm not remotely fussed on timescales, certainly not weeks or a few months. I'm picking sectors (PMs & Rare Earths etc) this year so far due to my broader outlook into 2020 and beyond.
My pick list is coming up to its three month timeline with a relatively poor c12% ROI for that quarter which I think reflects the general market malaise this year due to "trade wars" etc. Perhaps things will pick up again with interest rate drops overall but the bigger bullish impact there will be on commods and PMs especially of course. In effect, I've widened my usual 3-4 months Swing Trade timeline average out to around 12 months so I'm expecting to go relatively quiet while those various plays mature.
I'm still not convinced we'll get a rate cut in July but September is a banker IMO so perhaps a couple of months sideways/down action is called for here and elsewhere but time will tell.
It occurs to me that given how few of these Rare Earth Minerals plays there are, if I'm the Chinese and I'm looking at the US' intent then I'm, perhaps, also minded to start putting some money at work on plays like this to make it even more difficult for the US to catch up. Even if I just buy em up and never develop the resource to keep the global market supply focused on China.
Who knows eh - for all we know there's already a bidding war going on in the background betwixt US/China right now.
A £100m solution to a critical national resource issue?
Sounds pretty cheap to me - especially if we find decent Uranium (the US other critical national resource issue) in the current exploration campaign.
Overnight 10x baggers do happen sometimes - you've just gotta see the possibilities, buy a ticket, cross your fingers and wait it out.
Cash-in-bank-only value is at 8p.
The biggest no-brainer buy I've come across in a decade of trading.
Too right :)
Adjustment on my Silver shouts BTW - $15.85 is the pivot, $20/27 the major targets but I would guess it's not likely to beat $18s anytime soon - depends on Gold of course but if it goes over $18s from here then it's a legitimate and undeniable breakout.
Gold is kinda hot now so could bounce around quite a bit in a cooling-off phase but just for reference of where I think we're at from the $1.05k bottom - Gold's decade-long rise from $200s to $1900s was overbought once per year for ten years on the trot during that phenomenal rise and only topped out in the tenth year.
I'm not necessarily suggesting we're going to see $10k for Gold over the next decade but as a relative reference point I think it's worth pointing out that 2019 is likely only Year One of this rise IMO.
I suspect the same MO will apply to commodities across the board of course so big commods producers and junior explorers/developers sat on a load of cash relative to their current mcap are the go-to plays IMO.
The Dollar has had its butt kicked again today of course.
Nothing wrong with holding physical of course - just don't tell anyone you have it ............
The benefit of a PM miner is the cash leverage you get from market price-cost per ounce and FRES cost per Silver ounce (IIRC) is an epicly low $9 so going from $14 to $16 is a sizeable cash injection with the promise of much more than that down the line.
Silver @ $16.3 as I type - I don't necessarily expect it to hold my $16.1 pivot straight away but this is a pretty good test and the double-bottom shout to longer term horizontal resistance @ $26 is very clear on the chart.
Gold @ $1,450 doesn't hurt either of course as it provides half our cash at present Gold/Silver levels :)
As for longer term on Gold (maybe even in 2020 if the Dollar balloon goes up as I expect it to by then) - keep c$2,600-$2,800 in mind IMO ...
Remember that CBs forged Basel 3 for this year/Brexit so they themselves could get away with as little damage to their balance sheets as possible given they know the sh*t is going to continue to hit the money printing fan for quite some time yet and possibly at unprecedented levels. The current national and personal debt levels dictate that we can't be allowed to get into a deflationary environment and/or a recession so it's "free money" with big inflation (official or otherwise) from here on out IMO.
If you're wondering why trillions of Dollars are being poured into negative yielding instruments like German bonds then it's because they know that -0.50% in real terms is going to look pretty good in a year or two for people caught holding paper cash but much of the paper-rejecting money is going into Gold & Silver of course as it's such a big bucket, capable of taking in very many billions of Dollars itself on a weekly basis.
A pity perhaps that production is said to be faltering slightly this year (I'm very happy to reverse-read that news though - trust me ........) but we're the World's biggest Silver miner so every buck on that price is going to provide more buoyancy to the SP here going forward.
They'll be going for a cooling-off tech retrace - may see upper 700s again, may not.
I had $16.1 as an epic tech pivot for Silver from some months ago (when she beats and holds that then look out ...) so she may well have to think about going over the top there for a while but with the Gold/Silver ratio still at c89 right now there's plenty of scope for Silver to catch up with Gold.
Who knows on Gold but purely technically speaking, the clear target is mid $1,500s for sure but whether we get a straight line to there or it takes another six months only time will tell.
It'll all come down to the inevitable (IMO) Dollar kill timing but once Basel 3 kicked in at the end of March we "knew" this PMs blitz upwards was bound to happen - happy to continue to sit here, keep adding and wait it out ala MKA's Rare Earths play which also just looks to be a matter of time before a decent lift.