We are bullish on Silver first, and Gold second. Silver first because the production of silver is below the multiple demands for silver. Gold does not have nearly as many industrial uses as does silver. In fact, in many respects silver should be more valuable than Gold, but we also know that will never come to happen. Based on the price spread mentioned below, between silver and gold, we are saying silver will increase a bigger percentage than gold. silver will rise bigger percent than gold.
First, silver is found in the earth’s crust at a ratio to gold of eight to one. Currently, the Silver to Gold ratio is priced at about 68 to 1. There is a lot written on this ratio so you might do some research if interested in trading the ratio. Lots of room for silver to rally and close to that physical ratio.
Second, Silver production has been declining for about six years. Demand for silver has been exceeding supply for four years. This isn’t going to continue without higher prices.
Third, Last but not least, the electrification of everything and the growth of solar power will expand the demand for Silver as well as many other minerals.
Not limiting the conversation to Silver and including gold, we put together a group of Gold and Silver miners and provided the TIPRANKS price projections by analysts. We suggest not taking these price targets too literal, as there could be reasons other than purely doing their job that influences the price projections. I would consider the average percentage increase in price projected as a factor to consider. Generally, you can assume that the bigger the spread between current price and the target the more volatile the stock and company.
A comment on Gatos Silver. Gatos just came public in December 2020. They are a fully operational mining company as opposed to an exploration or developmental stage company. They came public at $7.00, so the projection when made, were for a sizable percent move. We would not expect any changes in ratings until after their next earnings report which is on Feb. 22.
We are in love with Karora Resources (KRRGF)* $2.65 but do not list them below. They are not follow by TIPRANKS. Six analysts have coverage on KRRGF with a low target of $4.12 and a high price target of a $6.375.
The average price target is $4.76. Prices are US$ while the website link prices are in Canadian$.
A rally to the average would be a 79% rally.
- Great Panther (GPL)* $1.10
TIPRANKS: Based on 2 analysts offering 12-month price targets for Great Panther Silver in the last 3 months.
The average price target is $1.95 with a high forecast of $2.50 and a low forecast of $1.40.
The average price target represents an 83.10% increase from the last price of $1.07
- AngloGold Ashanti (AU)* $23.75
TIPRANKS: Based on 2 analysts offering 12-month price targets for AngloGold Ashanti in the last 3 months.
The average price target is $37.00 with a high forecast of $38.00 and a low forecast of $36.00.
The average price target represents a 54.49% increase from the last price of $23.95.
- Gatos Silver (GATO)* $14.44
TIPRANKS: Based on 2 analysts offering 12-month price targets for Gatos Silver in the last 3 months.
The average price target is $11.50 with a high forecast of $14.50 and a low forecast of $8.50.
The average price target represents a 21.18% decrease from the last price of $14.59.
- SSR Mining (SSRM)* $16.80
TIPRANKS: Based on 8 analysts offering 12-month price targets for SSR Mining in the last 3 months.
The average price target is $28.79 with a high forecast of $35.41 and a low forecast of $22.03.
The average price target represents a 71.88% increase from the last price of $16.75.
- Pan American (PAAS)* $32.68
TIPRANKS: Based on 4 analysts offering 12-month price targets for Pan American Silver in the last 3 months.
The average price target is $37.46 with a high forecast of $43.28 and a low forecast of $26.00.
The average price target represents a 14.63% increase from the last price of $32.68.
- Kirkland Lake (KL)* $38.37
TIPRANKS: Based on 8 analysts offering 12-month price targets for Kirkland Lake Gold in the last 3 months.
The average price target is $57.68 with a high forecast of $66.89 and a low forecast of $44.85.
The average price target represents a 50.42% increase from the last price of $38.35.
- First Majestic Silver (AG) $16.96
TIPRANKS: Based on 5 analysts offering 12-month price targets for First Majestic Silver in the last 3 months.
The average price target is $14.63 with a high forecast of $20.46 and a low forecast of $8.85.
The average price target represents a -13.74% decrease from the last price of $16.96.
- Hecla Mining (HL) $6.06
TIPRANKS: Based on 2 analysts offering 12-month price targets for Hecla Mining Company in the last 3 months.
The average price target is $6.75 with a high forecast of $7.00 and a low forecast of $6.50.
The average price target represents a 11.39% increase from the last price of $6.06.
- Fortuna Silver (FSM) $7.47
TIPRANKS: Based on 5 analysts offering 12-month price targets for Fortuna Silver Mines in the last 3 months.
The average price target is $8.38 with a high forecast of $10.62 and a low forecast of $6.30.
The average price target represents a 12.18% increase from the last price of $7.47.
- Fresnillo (FNLPF) $14.10
TIPRANKS: Based on 5 analysts offering 12-month price targets for FRESNILLO in the last 3 months.
The average price target is $14.18 with a high forecast of $20.05 and a low forecast of $9.17.
The average price target represents a 0.57% increase from the last price of $14.10.
- Galiano Gold (GAU) $1.38
TIPRANKS: Based on 3 analysts offering 12-month price targets for Galiano Gold in the last 3 months.
The average price target is $2.05 with a high forecast of $2.80 and a low forecast of $1.57.
The average price target represents a 47.48% increase from the last price of $1.39.
The following video is excellent:
- REAL CONVERSATIONS: James Rickards interviewed by Keith McCullough, Jan 14, 2021: https://www.youtube.com/watch?v=JZVPNmgbwho
In it they discuss Rickards projected agenda by the new administration.
How that might impact the:
Economy, Interest rates, Stock Market and Precious Metals.
I do believe this will influence your investing strategy and focus for 2021.
Where Value meets Buy Signals!
Feel free to forward or recommend to others.
* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
Please refer to our web site for full disclosure at www.LivingOffTheMarket.com ZTA Capital Group, Inc.
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