Year to date the price of silver is up 37%. That’s the gain it has made from the close on December 31, 2019 up until yesterday’s close. Meanwhile, during all of this time the S&P 500 has managed to go up 4.9%. With all of the drama and wild swings in the market the reality is silver is vastly outperforming the stock market and so are most silver mining and exploration stocks.
The simplest way to beat the market and win at the trading game is to be invested in things beating the market! Check out this chart and you can see how the relative strength plot on the bottom that compares the price of silver to the S&P 500 is still going up.
Notice too that the the 20-day Bollingerg Bands enveloping the price chart of silver are starting to come together to tell us that this period of consolidation in October is nearing an end. If silver closes above $25.50 look for a buying surge to come in and a rally to begin.
You have to be ready for this thing ahead of time, because once it starts it is too soon to react and no one is talking about it on TV where it is all about either Trump, the election, or covid.
Luckily my top stock pick for this month, Silver Dollar Resources (OTCMKTS: SLVDF), is not only consolidating nicely, but the company has a few developments this month that position it perfectly for the next silver rally.
Shares of Silver Dollar Resources trade on the US OTC as SLVDF and on the Canadian Stock Exchange under the ticker SLV. You can see how much the stock went up in July and August when the price of silver last rallied. The company’s two current silver exploration projects include the advanced exploration/development stage La Joya Silver Project in Durango, Mexico, and the discovery-stage Pakwash Lake and the Longlegged Lake properties in the Red Lake Mining District of Ontario, Canada.
As the stock only went public in May, last week the company announced that it was hiring “Tetra Tech Inc. as technical advisors to work alongside the Company in guiding future exploration efforts on the La Joya Silver Project (the “Project”) in Durango, Mexico. Tetra Tech was previously involved with the Project providing technical support services between 2010 and 2015 when SilverCrest Mines Inc. (“SilverCrest”) owned and operated the Project. The Tetra Tech team consists of independent Qualified Persons as defined by National Instrument (NI) 43-101, who previously have visited the Project on several occasions and have completed two Inferred mineral resource estimates and developed a preliminary economic assessment study on behalf of SilverCrest.”
“We are thrilled to be working with the Tetra Tech team, whose previous experience and knowledge of the La Joya Project is already paying dividends,” said Mike Romanik, President of Silver Dollar. “This enables us to hit the ground running as we prepare for our initial drilling program. A formal historical data compilation is in progress and will be used for the development of an updated geological model to aid in identifying regional hot spots for follow up exploration.”
The company has spent the past few months getting organized, getting the ownership of the properties in order, and financing money to begin the next chapter – and that is to start to explore it’s properties to prove up a minable deposit.
Dave Skarica did an interview with the company’s CEO the other week you can find here.
If you jump to the 12 minute mark of the video you’ll some things coming from the CEO. He said the company is preparing phase three drill results with Tetra Tech to begin a new drill program by the end of the year. That process should generate some positive news stories, making this a time to buy to get ahead of coming news flow.
Disclosure: Mike Swanson owns shares of Silver Dollar Resources, Inc. Because it is a small cap stock with a market cap of less than $100 million he has put himself on a trading blackout on it and will not buy or sell a share of them for at least 30-days from the date of this post. Wallstreetwindow.com, is owned by Timingwallstreet, Inc., which is being compensated by a third party (Leadgopher LLC DBA Pinnacle Ad Network) to conduct an investor awareness advertising and marketing campaign for Silver Dollar Resources, Inc. This third party paid Timingwallstreet Inc., $23,000 to produce and disseminate this and other similar articles and send traffic to them through paid advertising online campaigns for 30 days beginning October 1, 2020 and he plans on writing more updates on the stock going into at least the end of the year. This compensation should be viewed as a major conflict with our ability to be unbiased, more specifically: This communication is for entertainment purposes only. Never invest purely based on our communication. For more on trading risks read our policy statement by clicking here.