Thursday and Friday's drop in Silver can be explained by the Gold/Silver Ratio Back testing the previous Support line.
Miners about to explode.
In our line of work, we all have to endure a lot of whining about the Silver price, but keep in mind the facts:
Silver is on the Brink of Extinction.
There have been no new silver discoveries.
On Planet Earth there are fewer than 33 discoveries (with a minimum of 25 Million ounces)
Gold is much more common, with over 150 discoveries (in North America alone) north of 750,000 ounces. (mineral resource estimates)
Meanwhile, Silver is used 20,000 to 1 more than gold industrially while accelerating as a monetary metal (as well as the #1 industrial metal for conducting energy)
The recent drop in silver can be explained by the gold/silver ratio simply back-testing the previous support line.
end of section
More Silver Supply Problems: Spotlight on Peru
Peru Silver production down 43%
Exception: Kuya Silver, a Jr. Miner in Production.
The market has not priced this in yet
Buy Kuya Silver
Meanwhile in Mexico
Mexico's Silver production is down 25% in a short time
Mexico’s Secretary of Environment Likely Building Coalition to Nationalize Silver
First Majestic's All-in-Sustaining Cost (AISC) for its La Encantada mine is nearly the spot price of Silver.
This is Bad News
end of section
Dolly Varden's "Silver Standard" Episode #2 airs tomorrow on SilverWars where CEO Shawn Khunkhun explains "the move northward trend out of Mexico into safer Canada" (paraphrased)
Moreover, Dolly Varden is one of only 14 companies checking these boxes:
1. having an excess of 25 million ounces of Silver
2. having excess of 750,000 ounces of Gold
3. and at grade 500% richer than the other 13
Altogether (across their entire property envelope,) Dolly Varden is now at 140 million ounces silver equivalent (using only gold and silver).
This is one of the largest undeveloped Silver and Gold projects in the World.
This Wednesday we have a feature article on AI data centers, the boom in remote solar power plants and Outcrop Silver.
end of section
Our warning on selling mining positions operating in Mexico is temporary (until further notice) and not permanent.
We recommend waiting out Mexico for more due diligence.
You don't want to gamble against Mexico's Secretary of Environment, Ms Maria Luisa Gonzalez. She is tight with their past and present president and is a sharp and shrewd Politician that has built a powerful coalition of campesinos, laborers, environmentalists and activists.
She believes the people and government of Mexico need to be guardians of the territory, and she is signaling that it may be time for the people and workers of Mexico to become the "rightful" profit takers of Silver.
Buy Andean Precious Metals instead of risky Mexico.
Andean Precious Metals operates out of Bolivia and Bolivia has already undergone nationalization. Andean Precious Metals emerged the winner out of this Political Event.
The Andean Precious Metals model of working with small-scale miners has:
1. No risk of nationalization
2. A model where thousands of Artisanal miners sell their ore to Andean Precious Metals. - source, https://www.lbma.org.uk/alchemist/alchemist-108/formalising-silver-artisanal-mining-in-bolivia (one of the best mining articles I've read)
3. Andean Precious Metals Corp. owns and operates the San Bartolomé processing facility in Potosí, Bolivia.
Andean Precious Metals makes a great profit from the Silver raw ore aggregate and the next stages in production. Meanwhile they don’t have the personnel liability because the small scale miners are self employed.
Andean Precious Metals processing plant is located next to the Cerro Rico Silver mine, which is considered one of the World's largest silver mines.
San Bartolomé is Bolivia's largest oxide processing plant and the only commercial silver oxide plant.
It uses a carbon-in-leach oxide processing method and has been in operation since June 2008
In addition to purchasing ore from thousands of Artisanal miners (who thrive because they are in business for themselves), Andean Precious Metals is acquiring other deposits in what is considered the World's top 3 mining districts EVER … Potosi Bolivia
Andean has enough silver ore "inventory to feed the mine" to continue operation for the next 4.6 years. That number is expected to jump as more deposits, Artisanal miners, and discoveries participate in this "win-win" APM business model.
end of section
Conclusion
Silver Supply is Disappearing
Silver Demand is Spiking
No need to worry about last Friday's smash
When you hear others whine about the Silver price smash, understand that bankers' short position is the cause ( Comex future trading is paper only, not physical)
Also, understand that Silver is merely tracing back to GSR as indicated in chart 1 above
We predict that the silver market will remain resilient, providing a sense of security to the investors. Lastly, get positioned into Andean Precious Metals before they release their 2nd quarter earnings (it will be very impressive and a way to pick up profits, Buy and Hold Andean Precious Metals)
Disclaimer / Disclosure / NOT FINANCIAL ADVICE
Information contained herein has been obtained from sources believed to be reliable, but there is no guarantee as to completeness or accuracy. Because individual investment objectives vary, this Summary should not be construed as advice to meet the particular needs of the reader. Any opinions expressed herein are statements of our judgment as of this date and are subject to change without notice. Any action taken as a result of reading this independent market research is solely the responsibility of the reader.
The Silver Academy is not and does not profess to be a professional investment advisor, and strongly encourages all readers to consult with their own personal financial advisors, attorneys, and accountants before making any investment decision.
The Silver Academy and/or independent consultants or members of their families may have a position in the securities mentioned.
Mr. Little does consult on a paid basis both with private investors and various companies including Kuya Silver, Outcrop Silver, Andean Precious Metals and Dolly Varden Silver. Investing and speculation are inherently risky and should not be undertaken without professional advice.
By your act of reading this independent market research letter, you fully and explicitly agree that The Silver Academy, Pixy, The Pickaxe & MineralWEALTH will not be held liable or responsible for any decisions you make regarding any information discussed herein.