In Q4 of 2018, silver outperformed stocks in blowout fashion, not to mention Bitcoin and cryptocurrencies, in general.
Take a look:
Courtesy: U.S. Global Investors
As gold and silver prices go up, mining companies stand to make a bloody fortune.
Imagine a mine that has a cost of production of $15 to produce an ounce of silver. With silver currently trading at $15.80 an ounce, the profit is $1.8 per ounce. If silver goes to $18 an ounce, which is only a 14% gain for the spot price of the underlying commodity, this theoretical miner stands to make much, much more.
At $18, the mine now cashes-in $3 per ounce, up from $1.8, which is a 66% increase.
While silver’s price rose by 14%, this miner saw a 66% increase to its mining profit margins. The leverage is enormous: 66/14 = 4.7.
This is the reason owning a mining stock is superior to owning gold in a raging bull market – the leverage is HUGE.
Companies that own undeveloped silver projects, see how their development-stage assets get repriced, sometimes in a life-changing manner.
I’ve found a company that has the potential to offer an even bigger leverage to the underlying commodity, since its shares are deeply-discounted, as Pure Blockchain Wealth sees it.
In the silver mining business, there are a handful of tycoons. Seriously, it’s a close-knit community because so few people truly have the experience necessary and the serial successful track record that includes building billion dollar mining conglomerates.
Keith Neumeyer is among the ultimate business moguls who have done it.
In the resource sector, he is known as the man, who has founded and manages the premier silver miner in Mexico, a billion-dollar company.
But, on top of being a top CEO, he owns his own portfolio of stocks. This is the person, who, quite arguably, knows more about silver mines than almost any other person alive. Pure Blockchain Wealth has found out about Silver One Resources (TSX-V: SVE & US: SLVRF), an under-the-radar opportunity, which Mr. Keith Neumeyer himself is a substantial shareholder of.
Therefore, this trade could be life-changing
There are thousands of mining companies, trading on stock exchanges, just as there are thousands of altcoins.
Most of them, nearly all of them, are next to worthless, but when you do your homework and find these rare gems, profits could be astronomical when gold prices rise.
Now, I want to show you how Silver One Resources (TSX-V: SVE & US: SLVRF) is in the ideal position to embark on a massive rally.
- It’s trading close to its all-time low: Today’s price is CAD$0.215, down over 50% in 2018. Just like Bitcoin’s many dramatic sell-offs, the best time to resume into cyclical trades, is after a massive drop.
Countless studies have shown that the best-performing stocks in a given calendar year are closely correlated with the WORST-PERFORMERS of the previous year, as long as business fundamentals are intact.
In this case, not only are the fundamentals solid, but they are even better now than ever.
- It is currently evaluating the potential of bringing a past-producing silver mine in Nevada back into production. In fact, it was one of the richest silver producers in the State and was in production by a major mining company, Kinross Gold, until the late 1990’s.
Nevada is the 3rd best mining jurisdiction in the world and, outside of Alaska, it is the largest silver producer in the United States.
Of course, this being Nevada and the fact that the property was a past producer means the permitting process should be clear and transparent, so I expect management to encounter very few roadblocks on its way to develop the project.
Remember, with Bakkt announcing a delay to an unknown date, institutional money is searching for a safe-haven trade, due to the chaos, derived from the government shutdown.
Silver is the ultimate insurance against fiat currencies investment over centuries.
Its last bull market, between 2009 and 2011, saw silver mining stocks shoot-up hundreds of percent, even thousands.
On top of potentially advancing the leach pads at Candelaria, the company has significant high grade silver exploration upside at the Candelaria project as well as exploring what could be a highly-mineralized Cherokee project in Nevada.
If silver continues to rally, on the backs of this horrific period for stocks, bonds and weaker economic data from the U.S., which is causing a weaker dollar, this could become our most successful companies that we cover.
Consider shares of Silver One Resources (TSX-V: SVE & US: SVLRF) NOW!
*** IMPORTANT UPDATE: This will be my ONLY silver position this year. I’m super-confident that it has what it takes. ***
Best Regards,
Brad Robbins
President, PureBlockchainWealth.com
Legal Notice:
This work is based on SEC filings, current events, interviews, corporate press releases and what we’ve learned as financial journalists. It may contain errors and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. Wallace Hill Partners LTD, a Canadian company, owned by the same parties as PureBlockchainWealth.com, has been compensated fifty thousand dollars, directly by the company, for a 30-day marketing campaign. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought.
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