Looking at this chart, we can clearly see smart money is bullish on silver while dumb money is shorting. Its a good bet to suggest the dumb money will be doing a lot of short covering in the future. Gold is looking bullish but we need something to help push it to break out, and when it does, this will cause silver to sky rocket. I believe when it comes, we will fly through 18 dollar silver easily, in a fast move and then touch 2016 high which was slightly above 20 dollars. Assuming gold breaks out when this happens, that high in silver should be broken through somewhat easily as well. This is very likely to happen as this chart suggests.
To potentially profit from this, I am going to post 3 silver stocks that I think will benefit very nicely from this. Of course the whole sector will rise though during this period of time.
My first stock suggestion is one that I own and am still currently buying while the stock is under 8 dollars.
First majestic silver
The next 2 stocks, I do not own any share in (only for the reason that first majestic has the highest percentage of revenue come from silver). I add these though because its good to be diversified incase of bad news in one particular stock that could greatly damage the price. This will reduce risk while stilling having great upside.
Great panther silver
Endeavour silver corp
Another stock that I dont own any at the moment but may in the future is silver one resources.
This stock is a lower market cap but could be added into the other 3 to gain from the move coming in silver.
The first 3 stocks are producers, which I like better at first since they move first before money moves into smaller cap stocks like this one.
The Canadian prices (since I am Canadian eh) of these stocks are:
first majestic 7.81
silver one is 30 cents
endeavour silver is 3.09
great panther silver 1.50
Of course its your money, so dont risk what you cant afford to lose. Nothing is guaranteed. Invest safe.
I will update this in a couple of months to see the progress of these 4 stocks, if buying i would recommend buying an equal dollar amount in all four company's to not expose yourself to much to one stock. I am not doing that of course but that is because I have a very high risk tolerance and I would only be bothered but not ruined even if I was to lose half of my investment.