Michael Ballanger of GGM Advisory Inc. shares his thoughts on current gold and silver market movements, as well as a few stocks on his list.
The USD index gave up recent gains this morning as bond yields continued to rise.
Gold (+.2%) and silver (+.77%) rebounded very slightly but there was some technical damage, particularly for gold. Copper (-0.2%) and oil (-0.08%) are lower, while stock index futures are slightly higher overall.
Yesterday was one of those classic days where the powers that be decided that Jerome Powell was right in his final press conference when he said, “I don't see a 'deer' and I don't see a '” inflation “.
As a result, they drove gold, silver, and copper down with a vengeance, as well as stocks after the price crash. Nvidia (NVDA: NASDAQ) profits seemed to suck all the bullish air out of the room.
I added to Pan American Silver Corp. (PAAS: TSX; PAAS: NASDAQ) yesterday with the June $20 calls at $1.60, so my new average is $1.775. PAAS is called $0.30 higher.
Money must hold the $30 level lest you be forced to abandon the entire silver position, which includes only PAAS stocks and calls. If silver can't sustain this critical and much-publicized $30 level, I see $28, then $26 in a hurry.
I keep adding American Eagle Gold Corp. as I learned that drilling was starting on the powerful NAK discovery on Monday. Although it will take a few months to see results, I expect some speculative buying to propel AE north of $1.00 quickly and before results.
I'll be working on the weekly missive for most of the day, but I'll leave you with two tables: gold and silver.
Gold appears to be heading towards $2,275-2,280, after breaking the uptrend line with yesterday's crash.
Silver, however, is still in an uptrend and even though it is coming out of an overbought state, if it can hold $30 it could be a perfect entry level.
However, I won't add any more until it safely returns above $31 and stays there for a few days.
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Important Disclosures:
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their households) own securities of American Eagle Gold Corp. and Pan American Silver Corp.
- Michael Ballanger: I, or members of my immediate household or family, hold titles of: All. I determined which companies would be included in this article based on my research and understanding of the industry.
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Michael Ballanger Disclosures
This letter makes no warranty as to the accuracy or completeness of the data provided. Nothing contained herein is intended or should be considered as investment advice, implied or otherwise. This letter represents my views and reproduces the transactions I make, but nothing more. Always consult your registered advisor to assist you in your investments. I accept no responsibility for any loss arising from reliance on the data contained in this letter. Options and junior mining stocks contain a high level of risk which may result in the loss of part or all of the invested capital and are therefore only suitable for experienced and professional investors and traders. One should be familiar with the risks involved in junior mining and options trading and we recommend that you consult a financial advisor if you feel that you do not understand the risks involved.