Silver just hit a ten-year high and is close to breaking out above $31. The precious metal is going up in value for several reasons.
- The dollar is showing signs of weakness.
- The Fed is holding on to cutting rates three times this year.
- Inflation is still in the picture
- China and India are showing surprising strength in their economies
- Commodities in general are moving higher in price
Things like oil, gold, and copper are undervalued and looking for a reversal to the mean. This trend could continue as the market broadens out from the Big Seven. The question you have to ask yourself is how do you play it.
I like silver and hydrocarbons. I’ve talked about oil and coal previously, today I’d like to talk about silver. If you think silver is going higher you can of course go to your local pawn shop and buy some silver coins or bars and toss them in your safe. You can also buy the iShares Silver Trust (SLV).
And those would be good investments especially if you are holding silver long-term.
I like to put some portion of my money on speculative silver trades. And the best way to play it is to buy a little-known silver miner called Avino Silver & Gold (ASM).
You won’t see advice like this on MSNBC, CBSMarketwatch or the Wall Street Journal. Those guys just cover the big names and clickbait. They don’t tell you how to make money down where the rubber meets the road.
This is the type of information you only get from experience, from being in the market for decades. That’s why we created the Outsider Club. To give you the information you won’t find anywhere else.
Now, if you look at Avino Silver & Gold Corp (ASM) you’ll notice in this 20-year chart that it has spiked anywhere from 300% to 928% on five occasions.
If you are willing to buy at the bottom below $1 or even $0.50 and wait two years you can successfully trade this stock and make the S&P 500 average returns seem laughable.
The last time I bought ASM was in 2020 around $0.55. For a brief moment in 2021, silver captured the attention of the meme stock traders and I was able to sell my position at $2.50. I think it was there for an afternoon.
Avino primarily explores for silver, gold, and copper deposits. It owns interests in 42 mineral claims and four leased mineral claims.
The company is projecting earnings per share of $0.05 on sales of $61.23 million. Last year they broke even on revenue of $43.89 million. That means we could see 40% topline growth.
At least one analyst has a $1.50 price target on them. They have a forward p/e of 17 and a price to book of 1.10.
What I like about the company is that they have been around for a long time and have survived all sorts of markets. Furthermore, the float is only 124 million shares so when the market takes a liking to them the share price shoots up fast.
Full disclosure, I do own a small amount of shares and I’m contemplating buying some more after you read this and have a chance to get in. Just remember to sell on the spike.
All the best,
Christian DeHaemer
Outsider Club
Outsiderclub.com
ASM stats:
https://finance.yahoo.com/quote/ASM/key-statistics
Tanker stocks for the win:
https://www.outsiderclub.com/this-little-known-sector-is-making-investors-lots-of-money/
Silver boom:
