What are you watching today?
Ahhh... I have accidentally pressed the "send" button when I thought I was choosing a topic. Now, I have to write ✍️ another post for Daily _Discussion, just make sure I get it right.
Similar topic or at least same sector... If you have not noticed, you probably are not looking at the right direction. Gold price has been hitting all time high (ATH) and silver price is hitting its 12 months high... And going... Strong...
You might be asking. Have you participate in this rally? If not, are you watching the space? If you are, are you asking, "What's next?"
I will provide a brief analysis, since it's a Friday night and market tends to be apprehensive going into a weekend. If you have not noticed, Donald Trump likes to announce his new "directives" on Saturdays, so it's not time to be making a lot of predictions.
Gold chart is obviously showing it breaking its ATH. RSI indicator hits overbought position, so is BOLL, lying at its upper boundary. Volume has been fairly consistent throughout this run.
Silver chart shows similar uptrend, but not to the extent of the gold run... RSI indicator is strong but not overbought, while lying at the upper boundary of BOLL could signal getting closer to overbought position. Volume is fairly uniform throughout this run as well... But not too much, which has the same implication as RSI indicator.
I expect some corrections in the horizon for both gold and silver prices. Having said that, I expect silver run to continue or even accelerate for the foreseeable future. As of today, the gold to silver ratio is lying at 89.9 as opposed to the long term average of 55.1. Either gold has a lot to fall or silver has a lot to jump 🦘! Take your pick... In this uncertain time...
Finally, I will provide some mining ⛏️ firms that I kept in my back pocket every time. No matter how high the gold and silver prices, these companies are the safest in the industry. They are known as the royalty miners... which ironically doesn't mine... Or should I say most don't mine these days... They have the lowest cost structure and supposedly lowest risk as far as mining ⛏️ activities are concerned.
Mining is a tough and risky business. It takes a lot of money just to get to the resources. Anything could happen along the way; floods, explosions 💥, landslides, you name it, you have it. Before you can make money 💰, you might run out of 💰. Yep, you need lots of 💰 to make 💰 in most mining projects. These royalty miners act like banks 🏦. They loan miners in advance for a fee (royalty), which is gold, silver, etc at a much lower price point. They don't need miners, so their headcounts are very low. They have lean cost structure.
See their charts to understand their power in this precious metals run...
Just for the sake of disclosure. I have positions in $Wheaton Precious Metals(WPM)$ , $Osisko Gold Royalties(OR)$ , obviously $Sandstorm Gold Ltd(SAND)$ . I have sold $Franco-Nevada(FNV)$ too early [Facepalm] [Spurting] [Cry] Looking forward at $Royal(RGLD)$ [Tongue] [Sly] [LOL]
Now you know, @Barcode the 🐈 😺 is out of the bag... But not totally... [Chuckle] [Evil] More to come [Silence]
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- Ah_Meng·03-28TOPI must apologise for the typographical errors. No excuse... will do better... For RGLD, I meant to say, I have been forever looking at it but have never committed myself... to me, they are equally good. There is obviously difference between them. FNV, WPM and RGLD are the giants in the royalty field. Being established, they are a lot more stable. You don't expect a big jump out of them, just slow and steady climb... the other 2 are relatively small and holds lots of potential. With potential comes risk... that's how the game works! [Facepalm] [Sly] [Duh] [LOL] [Chuckle] so take your pick. They will all do well in an ever precious metals favourable environment. Trump, likes him or hates him, will be good for precious metals group... even though he didn't intend it to be this way...1Report
- koolgal·03-31TOPI am also invested in both $iShares Gold Trust(IAU)$ and $iShares MSCI Global Gold Miners ETF(RING)$1Report
- koolgal·03-31Thanks for sharing your valuable insights.1Report