Silver has a run and is trading at $19.27. Up $1.09 or 5.97% on the day.
The excitement was palpable and traffic surged to the point that CEO.CA shut down at one point during the day.
Some of the stocks I follow did very well with BHS up 25% and GPLY up 9%.
V.BHS $0.15 +25%
V.GPLY $0.24 +9%
V.GPY $0.425 +3.6%
V.VIT $0.63 -3.08%
T.MOZ $1.43 +3.62%
V.WGO $1.11 +0.91%
V.ATC $0.23 -2.13%
V.ABN $0.14 +3.57%
V.ECR $0.20 +2.56%
However, this is barely the beginning of the long term rally which Gold $3000 | Silver $60 is predicated upon.
The fact is that there are a lot of people who have been holding junior resource stocks through the long bottom which extends back to the last rally. For many of these people, a short term rally in junior resource stocks is the liquidity event they have been praying for.
There are also plenty of investors who will want to trim their positions in particular companies or take profits. People were buying and financing BHS at $0.075. The opportunity to take a double on at least part of their position would have been tempting today.
The beginning of a rally means that a lot of investors with very little experience with or exposure to junior resource stocks will take a look at the market. As metals prices rise, those investors will become more inclined to pull the trigger on a few interesting juniors. It is a slow process and there will be fits and starts.
As I point out in Gold $3000 | Silver $60, typically, the big gains in junior resource companies come in the last third of the rally.
Right now we are barely into the first third and there are undervalued juniors all over.
We'll know the rally is gaining traction when we see daily increases in the price of gold and silver. Once that starts to happen, junior companies will start gaining investor interest and their shares will, in my view, rise far faster than the metals they are exploring and developing.
No comments:
Post a Comment