I say something like this at the bottom of many a PM cycle, but this time the opportunity is so doggone delicious, it merits a special graphic.
Don’t worry, I’m not going to beleaguer you with multiple charts tonight, as today is a travel day and I’m beat like an unwashed fifties-era poet. Let this one suffice, as it is, after all, my favourite stock in the PM universe — SLW, Silver Wheaton. And you luck-dawgs have been able to grab it a deep discount as of last week. Who knows? You may even be able to get a bit of a re-touch this, week, but alls the better…
What I really wanted to point out was the rarity of this cycle low, and it’s attendant rewards. Have a look see at what SLW did the last time it came this close to touching it’s 200-day EMA:
That’s right, there was a 59% move up from the last lows to the next sell off, and even more after that selling consolidated at the 50-day EMA.
Now here’s the even better news… SLW’s more volatile brothers, EXK and AG had even greater surges after their most recent visit to the deep lows. For EXK, the move was from approximately $5.50 to all time highs of $12.50 — an 127% move, while AG took it’s last deep cycle lows of approximately $10.50 to almost $27.00 — a 257% increase. Keep in mind that these more volatile juniors will be more painful to hold over long periods of time.
Nevertheless, one should learn to live with such fruitful pain.
_________________If you enjoy the content at iBankCoin, please follow us on Twitter