After yesterdays craziness with the #silversqueeze things are settling back to normal in the silver and uranium markets. Ho-hum. And what have we here? Is crypto catching a bid? Bitcoin is at $34,964 as I type this – interesting… we did see Canaan ($CAN) one of our new kinetic rockets and our crypto play move higher.
We’ve been huge fans of silver for years now, so it goes without saying that we were very intrigued by #silversqueeze trending on Twitter over the weekend.
Today during my lunch break I went down to my local coin shop to see what all the fuss was about. The parking lot was full, but there were only a few people in line outside the building. I called the phone number listed on the sign and eventually got to a live voice. She took my name and phone number, and I received a text a few seconds later. I was #37 in line and my estimated wait time was 4.5 hours!
OK, things were getting a bit more real. I went to McDonalds for some lunch, and then went home and jumped on Apmex.com. Silver Eagles were selling for $41 each – a $12 premium over spot!
Ultimately I decided to skip the line at the local shop and buy a few online for an outrageous premium.
If you are wondering if the #silversqueeze is real, it is.
Well, not much is going on in the Uranium and Silver markets these days. Uranium and Silver are rangebound and don’t seem to want to do much of anything these days. For us, thats OK since part of our kinetic rockets strategy is writing out of the money covered calls – which will expire without being assigned if this sleepy action continues.
In other news, bitcoin seems to be retracing some of its surge as of late. As of this writing its at $30,943. We would love to see it retrace all the way back to $23K – for us, that would be go time, however that may never happen. We’ll see.
Alexco Resources ($AXU) which is one of our new kinetic rockets, announced some exciting drill results today:
ALEXCO EXTENDS BERMINGHAM HIGH-GRADE MINERALIZATION AT DEPTH, INTERSECTS 3,583 G/T SILVER OVER 8.76 METERS TRUE WIDTH AND OTHER SIGNIFICANT RESULTS
We are excited to see this extension of mineralization at depth and look forward to more news as Alexco continues to add to their existing silver resource at Bermingham.
Silver was down $1.71 today or 6.29% today from $27.21 to $25.50. We have been buyers recently and see this as another opportunity to accumulate more silver on weakness.
Our favorite play, and a “kinetic rocket” we are building in the silver sector is Alexco Resource Corp ($AXU). Alexco is a pure silver miner with +75% revenue from silver. They are located up in the Yukon and just began concentrate production at the Keno Hill Silver District Mill.
We are not alone in our bullish outlook in silver. Legendary investor Jim Rogers mentioned silver as something he is buying currently in his recent interview with Jake Ducey.
At half the price of its All Time High of around $50 way back in 1980, we still very much like silver here and believe it is very undervalued compared to other sectors in the market.